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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