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.
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 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.
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.
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.
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.
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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.