TMCnet News
Rockwell Collins Q3 Profit Tops View, But Sales Miss; Boosts 2014 EPS Outlook(dpa-AFX International Compact Via Acquire Media NewsEdge) WASHINGTON (dpa-AFX) - Communications and aviation electronics maker Rockwell Collins, Inc. (COL) reported Tuesday a profit for the third quarter that declined from last year, despite double-digit sales growth, reflecting lower sales at government systems and loss from discontinued operations. However, adjusted earnings per share topped analysts' expectations, while quarterly sales missed their estimates. Looking ahead, the company raised its earnings outlook for the full-year 2014, while trimming annual sales outlook. "This was another strong quarter for Rockwell Collins and demonstrates we are on a path to accelerating growth and increasing shareowner value," CEO Kelly Ortberg said in a statement. The Cedar Rapids, Iowa-based company reported net income of $158 million or $1.15 per share for the third quarter, lower than $164 million or $1.20 per share in the prior-year quarter. Income from continuing operations for the quarter edged up to $163 million or $1.19 per share from $161 million or $1.18 per share in the year-ago quarter. On average, 19 analysts polled by Thomson Reuters expected the company to report earnings of $1.17 per share for the quarter. Analysts' estimates typically exclude special items. Total sales for the quarter increased 12 percent to $1.26 billion from $1.13 billion in the same quarter last year, but missed sixteen Wall Street analysts' consensus estimate of $1.30 billion. Sales growth was primarily due to the contribution from ARINC, which was acquired in late December 2013 and included in the information management services segment. Sales at commercial systems, which provides aviation electronics systems, products and services to regional aircraft makers and airlines worldwide, increased 6 percent to $583 million from last year. Meanwhile, 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, declined 6 percent to $535 million from a year ago. Information management services sales soared to $146 million from $12 million, with ARINC contribution $134 million. "This financial performance, and our successful progress on the integration of ARINC, has enabled our company to once again raise our earnings per share guidance for the full year," Ortberg added. The company also announced the sale of its satellite communications systems business formerly known as Datapath, Inc., which designs, manufactures and services ground-based satellite communication systems primarily for military customers. The sale is expected to close in the fourth quarter of fiscal 2014. The proposed sale of Datapath is part of the company's strategy to reshape its government systems segment to align with the changing dynamics of the defense environment and focus on the core products and solutions that best fit with its overall plan for growth. Looking ahead to fiscal 2014, Rockwell Collins raised its earnings guidance to a range of $4.45 to $4.55 per share from the prior range of $4.40 to $4.55 per share, due to improved information management services earnings. The company also now anticipates revenue between $4.90 billion and $4.95 billion, down from the prior guidance range of $4.95 billion to $5.05 billion. Street is currently looking for full-year 2014 earnings of $4.50 per share, on annual revenues of $5.04 billion. COL closed Monday's regular trading session at $80.43, up $0.76 on a volume of 0.96 million shares. Copyright RTT News/dpa-AFX |