Rockwell Collins Increases Sales but Misses Revenue Estimates

Seth Jayson, The Motley Fool
Updated

Rockwell Collins (NYS: COL) reported earnings on July 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q3), Rockwell Collins missed estimates on revenue and met expectations on earnings per share.

Compared to the prior-year quarter, revenue improved slightly and GAAP earnings per share expanded.


Gross margins dropped, operating margins contracted, and net margins expanded.

Revenue details
Rockwell Collins logged revenue of $1.21 billion. The 16 analysts polled by S&P Capital IQ predicted revenue of $1.23 billion on the same basis. GAAP reported sales were 1.3% higher than the prior-year quarter's $1.19 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.14. The 19 earnings estimates compiled by S&P Capital IQ forecast $1.15 per share. GAAP EPS of $1.14 for Q3 were 12% higher than the prior-year quarter's $1.02 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.)

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 29.8%, 20 basis points worse than the prior-year quarter. Operating margin was 18.8%, 20 basis points worse than the prior-year quarter. Net margin was 13.8%, 50 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.34 billion. On the bottom line, the average EPS estimate is $1.31.

Next year's average estimate for revenue is $4.83 billion.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 341 members out of 357 rating the stock outperform, and 16 members rating it underperform. Among 93 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 91 give Rockwell Collins a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rockwell Collins is outperform, with an average price target of $62.93.

Can your portfolio provide you with enough income to last through retirement? You'll need more than Rockwell Collins. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.

The article Rockwell Collins Increases Sales but Misses Revenue Estimates originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement