The 10-second takeaway
For the quarter ended March 31 (Q2), Rockwell Collins met expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share grew.
Margins expanded across the board.
Rockwell Collins reported revenue of $1.16 billion. The 17 analysts polled by S&P Capital IQ hoped for revenue of $1.18 billion on the same basis. GAAP reported sales were 4.5% lower than the prior-year quarter's $1.22 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.09. The 18 earnings estimates compiled by S&P Capital IQ forecast $1.09 per share. GAAP EPS of $1.09 for Q2 were 14% higher than the prior-year quarter's $0.96 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 30.2%, 130 basis points better than the prior-year quarter. Operating margin was 18.4%, 60 basis points better than the prior-year quarter. Net margin was 13.9%, 160 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.24 billion. On the bottom line, the average EPS estimate is $1.17.
Next year's average estimate for revenue is $4.86 billion. The average EPS estimate is $4.44.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 338 members out of 354 rating the stock outperform, and 16 members rating it underperform. Among 105 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 102 give Rockwell Collins a green thumbs-up, and three 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 $64.69.
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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 of Motley 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.