Rockwell Collins, Inc. Earnings Cheat Sheet: A Streak of Profit Growth Continues
Falling revenue did not prevent S&P 500 (NYSE:SPY) component Rockwell Collins, Inc. (NYSE:COL) from reporting a profit boost in the third quarter. Rockwell Collins, Inc. designs and produces communications and aviation electronics for commercial and military customers across the globe. Honeywell International, Inc. Earnings Cheat Sheet: Profit Rises Again>>
Rockwell Collins Earnings Cheat Sheet for the Third Quarter
Results: Net income for Rockwell Collins, Inc. rose to $158 million ($1.01 per share) vs. $142 million (89 cents per share) in the same quarter a year earlier. This marks a rise of 11.3% from the year earlier quarter.
Revenue: Fell 2% to $1.19 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: COL fell short of the mean analyst estimate of $1.04 per share. It fell short of the average revenue estimate of $1.26 billion.
Quoting Management: “Very strong earnings growth in Commercial Systems more than offset the lingering impacts of the continuing resolution on our Government Systems business allowing the company to achieve a 13 percent increase in earnings per share on relatively flat sales,” said Rockwell Collins Chairman, President and Chief Executive Officer Clay Jones. “Indicative of our strong operating performance this quarter, Commercial Systems increased their operating margins by 420 basis points on double-digit revenue growth while Government Systems increased margins as well despite an 11% decrease in sales.”
The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 1.4% and in the first quarter, the figure rose 24.8%.
A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the third quarter of the last fiscal year, which saw revenue rise 12%.
The company fell short of estimates last quarter after being in line with expecations the quarter before with net income of 96 cents.
Competitors to Watch: The Boeing Company (NYSE:BA), Honeywell Intl. Inc. (NYSE:HON), General Dynamics Corp. (NYSE:GD), Elbit Systems Ltd. (NASDAQ:ESLT), L-3 Communications Hldgs., Inc. (NYSE:LLL), Northrop Grumman Corp. (NYSE:NOC), Raytheon Company (NYSE:RTN), LMI Aerospace, Inc. (NASDAQ:LMIA), and Innovative Solutions & Support Inc (NASDAQ:ISSC).
(Source: Xignite Financials)