Communications and aviation electronics maker Rockwell Collins, Inc. (COL: Quote) reported Tuesday a profit for the third quarter that increased from last year, reflecting improved margins and sales growth.
However, both earnings per share and quarterly revenues missed analysts' expectations. Looking ahead, the company trimmed its earnings and revenue outlook for the full-year 2012.
"In the current challenging market conditions, our balanced business model and capital deployment strategies are providing the stability and shareowner focus that you would expect from Rockwell Collins," Chairman, President and CEO Clay Jones said in a statement.
The Cedar Rapids, Iowa-based company reported net income of $166 million or $1.14 per share for the third quarter, higher than $158 million or $1.01 per share in the prior-year quarter.
On average, 18 analysts polled by Thomson Reuters expected the company to report earnings of $1.15 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue for the quarter edged up 1 percent to $1.21 billion from $1.19 billion in the same quarter last year, and missed fifteen Wall Street analysts' consensus estimate of $1.24 billion.
The company noted that government systems sales increased for the first time in five quarters to complement moderating revenue in commercial systems due to difficult comparables and the impacts from a recent bankruptcy filing by one of our customers.
Sales at commercial systems, which provides aviation electronics systems, products and services to regional aircraft makers and airlines worldwide, edged up 1 percent to $526 million from last year.
Sales at government systems, which provides communication and electronic systems, products and services to the U.S. Department of Defense, state and local governments and other government agencies, grew 2 percent to $679 million from a year ago.
Total segment operating margin for the quarter expanded 20 basis points to 21.0 percent from last year's 20.8 percent.
"The slowdown in the global economic recovery and bankruptcy of Hawker Beechcraft continues to impact our initial projections of the business aviation growth. As a result, we have revised our 2012 sales, EPS and cash flow guidance," Jones added.
Looking ahead to fiscal 2011, Rockwell Collins trimmed its earnings from continuing operations outlook to a range of $4.40 to $4.50 per share from the prior range of $4.30 to $4.60 per share. The company also lowered revenue outlook to about $4.80 billion from the previously expected $4.85 billion.
Street is currently looking for full-year 2012 earnings of $4.40 per share, on annual revenues of $4.84 billion.
In Tuesday's regular trading session, COL is currently trading at $47.09, down $2.09 or 4.25% on a volume of 0.96 million shares.
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by RTT Staff Writer
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