Esterline Technologies Corp. (ESL) Thursday reported a lower profit for the first quarter hurt mainly by lower margins that offset some significant revenue growth. Nevertheless, earnings for the quarter came in well ahead of analysts expectations, but revenues fell short.
Moving forward, the engineered products maker for aerospace and defense sector, raised its outlook for the full year 2012.
Esterline said its results for the quarter include $0.25 per share of accounting charges to recognize the fair value of the Souriau inventory as expense. Souriau is a French connector company that Esterline acquired last July.
Gross margin in the quarter dropped to 33.6 percent from 35.6 percent last year. On an adjusted basis, margin improved to 36.3 percent.
Revenue for the first quarter grew from last year, led by robust performance in Sensors & Systems segment, followed by increases at the Advanced Materials segment.
Despite a tough economic climate, significant growth was seen in commercial aerospace business and from some defense-oriented businesses, the company said in a statement.
Esterline's net income from continuing operations for the quarter was $22.8 million or $0.73 per share, compared to $30 million or $0.97 per share last year. On average, 8 analysts polled by Thomson Reuters expected earnings of $0.46 per share for the quarter. Analysts' estimates typically exclude special items.
Bellevue, Washington-based Esterline reported first quarter revenue of $471 million, up from $371 million last year. Nine analysts had a consensus revenue estimate of $476.73 million for the quarter. The company lifted its fiscal year 2012 outlook by $0.10 per share, and now expects earnings in the range of $5.10 to $5.40 per share. Eight analysts on consensus currently expect Esterline to report earnings of $5.14 per share for the year.
ESL closed Thursday's regular trade at $64.70, down $0.25 or 0.38%, on a volume of 0.60 million shares on the NYSE. In after hours, the stock gained 1.30%.
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