Rockwell Collins Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Rockwell Collins (NYSE:COL) will unveil its latest earnings on Friday, October 26, 2012. Rockwell Collins designs and produces communications and aviation electronics for commercial and military customers across the globe.

Rockwell Collins Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of $1.12 per share, a rise of 9.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.32. Between one and three months ago, the average estimate moved down. It also has dropped from $1.29 during the last month. Analysts are projecting profit to rise by 7.4% compared to last year’s $4.23.

Past Earnings Performance: The company fell short of estimates last quarter after being in line with forecasts the quarter prior. In the third quarter, it reported profit of $1.14 per share versus a mean estimate of $1.15. Two quarters ago, it reported net income of $1.09 per share.

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Stock Price Performance: Between August 24, 2012 and October 22, 2012, the stock price had risen $4.47 (9%), from $49.41 to $53.88. The stock price saw one of its best stretches over the last year between October 10, 2012 and October 18, 2012, when shares rose for seven straight days, increasing 4.2% (+$2.22) over that span. It saw one of its worst periods between May 7, 2012 and May 18, 2012 when shares fell for 10 straight days, dropping 6.3% (-$3.38) over that span.

A Look Back: In the third quarter, profit rose 5.1% to $166 million ($1.14 a share) from $158 million ($1.01 a share) the year earlier, but fell short analyst expectations. Revenue rose 1.3% to $1.21 billion from $1.19 billion.

Wall St. Revenue Expectations: On average, analysts predict $1.33 billion in revenue this quarter, a rise of 2.3% from the year-ago quarter. Analysts are forecasting total revenue of $4.79 billion for the year, a decline of 0.4% from last year’s revenue of $4.81 billion.

Key Stats:

The company is looking to build on last quarter’s top line growth, which snapped a string of revenue declines. Revenue fell 1.4% in the first quarter and 5.1% in the second quarter before climbing in the third quarter.

There has enjoyed solid performance recently heading into this earnings announcement with profit rising by a year-over-year average of 3.8% for the last four quarters.

Analyst Ratings: With 10 analysts rating the stock a buy, one rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.85 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.9 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 2.2% to $1.49 billion while assets decreased 0.1% to $2.75 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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