Rockwell Collins Incorporated (NYSE: COL) provides flight deck avionics, aircraft electronics, and aviation simulation equipment for commercial, government and regional aircraft. The company is currently flying high. Recently released 3Q earnings indicate net income increased 19% to $174 million. EPS gained 24% to $1.07, beating Wall Street estimates by $0.05. 3Q sales increased 7% to $1.2 billion, which translated into a $12 million increase in operating cash flow to $310 million.
While many economic sectors are facing a great deal of uncertainty, Rockwell Collins has locked in a number of government and commercial contracts that will translate into steady revenue growth well into the future. Defense spending increases annually and Rockwell Collins was recently awarded contracts by BOC to equip 47 new Airbus A320s, as well as another contract from Bombardier to supply avionics for its C series commercial aircraft.
Both the Commercial Systems and the Government Systems segments increased sales 7-8%. The company spent $81 million to buy back 1.4 million shares, with another quarter billion authorized for share repurchases. In view of all the contracts in the pipeline, the company has revised and improved its FY2008 guidance. FY2008 total sales are forecast at $4.75 billion, with FY EPS in the $4.05-$4.10 range. The stock is currently trading under $47, near its 52- week low of $44.53.
Rockwell Collins (COL) flying high
Posted Jul 18th 2008 2:47PM by Victoria Erhart
Filed under: Earnings Reports, Good news
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Reader Comments (Page 1 of 1)
7-19-2008 @ 9:17AM
Chris K. said...
Just consider that Rockwell Collins might be seeing some of its commercial orders withdrawn as airlines cancel their orders with Airbus and Boeing. We haven't seen this happen, but clearly Airbus and Boeing expect their order books to be trimmed significantly given the current position of their customers.
7-20-2008 @ 3:10AM
Mike Sanders said...
I wonder if this is the same Collins, that used to make amateur radio equipment... Back when I was an "active" ham, there was no more prestigious name, in radio transceivers. Collins rigs were (are) the standard, by which all other radios were judged. Now, I'm curious... Maybe, I need to visit their website, but I'm afraid that it might re-ignite my interest in ham radio and I want to pursue other things, before my time is up... Oh heck, I'm going to have a peak. I would like a general coverage receiver, even if I don't do any transmitting, though I am still licensed.