Despite Rougher Sales Environment, Margin Holds Up for RBC Bearings in 4Q

We don't expect a big move in our fair value estimate for RBC Bearings ROLL following the release of fiscal fourth-quarter and full-year results. The company put up a solid fourth quarter, using cost-cutting measures and efficiency gains to help raise the gross margin year over year (37.9% from 35.4% in the fourth quarter of 2012), despite sales that dropped 7.5% compared with the prior-year period.