Esterline Technologies Corp. (ESL) Thursday reported a decline in fourth-quarter profit as lower margins offset growth in revenues, which missed Street estimates.
Going forward, the company gave a weak outlook for first quarter and the full year 2012, which is expected to miss Street estimates. ESL stock which lost nearly 4 percent before markets closed Thursday, further dropped 2 percent on the results.
The Bellevue, Washington-based company reported fourth-quarter earnings from continuing operations of $19.4 million or $0.62 per share, a decline froms $49.3 million or $1.60 per share last year.
Results for the quarter include after-tax one-time charges of $18.3 million or $0.59 per share.
On average, 11 analysts polled by Thomson Reuters expected earnings of $1.17 per share for the quarter. Analysts' estimates typically exclude special items.
Esterline reported fourth-quarter sales of $502.4 million, up from $430.5 million last year, while analysts expected $524.43 million.
Esterline said results were impacted by gross margin that shrank to 30.5 percent from 36.7 percent last year. There was also an increase in operating expenses to $119 million from $87 million, reflecting higher selling & general costs, as also research overheads.
Looking ahead to the first quarter, Esterline expects earnings of $0.40 to $0.50 per share, which includes a charge of $0.27 per share.
Street analysts currently expect the company to earn $1.09 per share for the first quarter.
For the full year 2012, the company expects earnings of $5.00 to $5.30 per share and revenues of $2 billion to $2.1 billion.
Street analysts expect earnings of $5.72 per share on revenues of $2.12 billion for the full year.
Esterline Technologies Corp. makes engineered products and systems mainly for the aerospace and defense market.
ESL closed Thursday's regular hours at $51.08, down $ 2.07 or 3.89%, on the NYSE. In after hours, the stock dropped $1.08 or 2.11%.
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