The 10-second takeaway
For the quarter ended June 30 (Q3), Rockwell Collins met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. GAAP earnings per share grew.
Gross margins contracted, operating margins grew, net margins increased.
Rockwell Collins tallied revenue of $1.17 billion. The 13 analysts polled by S&P Capital IQ looked for a top line of $1.17 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 $1.20. The 17 earnings estimates compiled by S&P Capital IQ anticipated $1.15 per share. GAAP EPS of $1.20 for Q3 were 5.3% higher than the prior-year quarter's $1.14 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 22.4%, 740 basis points worse than the prior-year quarter. Operating margin was 20.7%, 140 basis points better than the prior-year quarter. Net margin was 14.1%, 30 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.26 billion. On the bottom line, the average EPS estimate is $1.32.
Next year's average estimate for revenue is $4.62 billion. The average EPS estimate is $4.59.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 364 members out of 381 rating the stock outperform, and 17 members rating it underperform. Among 124 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 122 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 $67.06.
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