Analyst cuts earnings estimate for RBC Bearings

An analyst maintained Friday his "Outperform" rating for RBC Bearings Inc., but cut his earnings-per-share estimate for fiscal 2009 due in part to the effect of the Machinists' strike against Boeing Co.

Robert W. Baird & Co. analyst Peter Lisnic also reduced his price target for the Oxford, Conn., company to $26 from $42.

"Impacts from the now-resolved Boeing strike aside, we believe underlying aerospace cycle and content wins should continue to provide favorable tail winds through (fiscal year 2010)," he said.

Lisnic reduced his per-share earnings estimate to $1.90 from $2.10 to reflect "lower sales assumptions" in RBC's distribution businesses and the effect of the Boeing strike, which he said appears to be concentrated in the third quarter.

Analysts surveyed by Thomson Reuters, on average, expect per-share earnings of $2.13 for the year ending March 29.

The eight-week strike by 27,000 workers in Washington state, Oregon and Kansas ended after the Machinists ratified a new four-year contract with the company Saturday.

Lisnic said RBC expects demand to slow, but "it has yet to actually see this in order patterns."

RBC also expects certain niche markets, such as mining, wind, oil and gas to "maintain their growth trajectories and offset softer small construction, semiconductor equipment and heavy truck markets," he said.

Its shares edged up 30 cents to $21.15 in midmorning trading.