Communications and aviation electronics maker Rockwell Collins, Inc. (COL) reported Friday a profit for the first quarter that increased 27 percent from last year, reflecting double-digit sales growth.
Adjusted earnings per share from continuing operations miss analysts' expectations, while quarterly sales topped their estimates. Looking ahead, the company raised its earnings outlook for the full-year 2015, while maintaining annual sales outlook.
"We're off to a great start on our fiscal 2015 plan. In the quarter we realized strong revenue growth in our Commercial Systems and Information Management Services businesses and a stabilization of revenues in our Government Systems business," President and CEO Kelly Ortberg said in a statement.
The Cedar Rapids, Iowa-based company reported net income of $167 million or $1.24 per share for the first quarter, higher than $131 million or $0.96 per share in the prior-year quarter.
Income from continuing operations for the quarter grew to $169 million or $1.26 per share from $134 million or $0.98 per share in the year-ago quarter.
Excluding a benefit of $0.16 per share due to the retroactive extension of the Federal R&D tax credit, adjusted earnings from continuing operations for the latest quarter would have been $1.10 per share.
On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $1.13 per share for the quarter. Analysts' estimates typically exclude special items.
Total sales for the quarter increased 16 percent to $1.23 billion from $1.05 billion in the same quarter last year,and topped fourteen Wall Street analysts' consensus estimate of $1.21 billion. Organic sales grew only 4 percent.
Sales growth was primarily due to the contribution from ARINC, which was acquired in late December 2013 and included in the information management services segment.
Sales at commercial systems, which provides aviation electronics systems, products and services to regional aircraft makers and airlines worldwide, increased 9 percent to $568 million from last year.
Meanwhile, sales at government systems, which provides communication and electronic systems, products and services to the U.S. Department of Defense, state and local governments and other government agencies, declined 1 percent to $509 million from a year ago.
Information management services sales soared to $149 million from $18 million, with ARINC contribution $137 million.
"With this return to top-line growth, we executed quite well and delivered improved margin performance. The results for the first quarter support our plan for double digit earnings per share and cash flow growth for fiscal year 2015," Ortberg added.
Looking ahead to fiscal 2015, Rockwell Collins raised its earnings guidance to a range of $5.10 to $5.30 per share from the prior range of $4.90 to $5.10 per share, due to the retroactive extension of the Federal R&D tax credit. Meanwhile, the company to anticipate revenues between $5.20 billion and $5.30 billion.
Street is currently looking for full-year 2015 earnings of $5.08 per share, on annual revenues of $5.29 billion.
In Friday's regular trading session, COL is currently trading at $84.68, down $2.30 or 2.64% on a volume of 46,453 shares.
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