The 10-second takeaway
For the quarter ended March 31 (Q2), Rockwell Collins met expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly. Non-GAAP earnings per share shrank. GAAP earnings per share expanded.
Gross margins dropped, operating margins dropped, net margins increased.
Rockwell Collins booked revenue of $1.13 billion. The 14 analysts polled by S&P Capital IQ hoped for sales of $1.13 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $1.04. The 17 earnings estimates compiled by S&P Capital IQ predicted $1.17 per share. Non-GAAP EPS of $1.04 for Q2 were 4.6% lower than the prior-year quarter's $1.09 per share. GAAP EPS of $1.17 for Q2 were 7.3% higher than the prior-year quarter's $1.09 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 20.2%, 1,000 basis points worse than the prior-year quarter. Operating margin was 18.1%, 30 basis points worse than the prior-year quarter. Net margin was 14.2%, 30 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.19 billion. On the bottom line, the average EPS estimate is $1.17.
Next year's average estimate for revenue is $4.64 billion. The average EPS estimate is $4.59.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 344 members out of 362 rating the stock outperform, and 18 members rating it underperform. Among 108 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 105 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 $62.87.
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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. The Motley Fool has no position in any of the stocks mentioned. 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.