Esterline Technologies Earnings: Everything You Must Know Now

Esterline Technologies Corp. (NYSE:ESL) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Esterline Technologies Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 47.32% to $1.65 in the quarter versus EPS of $1.12 in the year-earlier quarter.

Revenue: Decreased 1.62% to $478.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Esterline Technologies Corp. reported adjusted EPS income of $1.65 per share. By that measure, the company beat the mean analyst estimate of $1.53. It missed the average revenue estimate of $505.9 million.

Quoting Management: Esterline Chief Executive Officer Brad Lawrence said the company’s third quarter operating results “…came in about where we expected, reflecting strength in commercial aerospace markets, offset by continued and anticipated softness in certain defense programs.” Lawrence said the third quarter’s solid operating results “…combine with a laser focus on executing against existing backlog to provide further confidence in the company’s view of a strong finish for the year.” He said that Esterline operations have “…responded quite well to the tough defense environment and are leveraging the positive trends in commercial markets to push profitability improvement, both through careful cost control and the advantages of scale that accompany growth,” adding, “…you can see Esterline’s underlying strength in the drop-through to free cash flow — a record $159 million through nine months — and our ability to maintain a rock-solid balance sheet, two keys to continuing our long-term growth strategy.”

Key Stats (on next page)…

Revenue decreased 4.3% from $499.56 million in the previous quarter. EPS increased 47.32% from $1.12 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.90 to a profit $1.86. For the current year, the average estimate has moved down from a profit of $5.41 to a profit of $5.31 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)