Esterline Technologies Corp. (ESL: Quote) said Thursday its second quarter profit dropped from last year as lower margins offset growth in revenues. Excluding one-time items, adjusted earnings for the quarter came in line with Street estimates, while sales missed expectations.
Moving forward, Esterline cut the top end of its full year earnings outlook, citing uncertainties in timing of key shipments.
Esterline, which makes engineered products for aerospace and defense customers, reported an increase in quarterly revenues driven by strong growth at Sensors & Systems, partly offset by decline at Avionics & Controls segment.
The topline growth was offset by a decline in gross margin to 36.6 percent from 37 percent last year, and increased research and selling costs.
Bellevue, Washington-based Esterline posted second quarter net income of $45.2 million or $1.44 per share, compared to $45.9 million or $1.47 per share last year.
Excluding items, earnings for the quarter were $1.29 per share. On average, 10 analysts polled by Thomson Reuters expected earnings of $1.29 per share. Analysts' estimates typically exclude special items.
Net sales for the quarter totaled $504.8 million, compared to $435 million in the prior year. Analysts expected sales of $510.96 million for the quarter.
Esterline now expects full year net income of $5.10 to $5.25 per share, compared to its prior outlook of $5.10 to $5.40 per share. Analysts currently expect earnings of $5.27 per share.
ESL closed Thursday at $64.56, down $0.93 or 1.42%, on the NYSE. In after hours, the stock further dropped $2.26 or 3.5%.
by RTT Staff Writer
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