Free Post Earnings Research Report: Rockwell Collins’ Sales Soared 69%; EPS Surged 54%
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LONDON, UK / ACCESSWIRE / February 06, 2018 / Active-Investors.com has just released a free earnings report on Rockwell Collins, Inc. (NYSE: COL). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=COL. Rockwell Collins reported its first quarter fiscal 2018 operating and financial results on January 26, 2018. The aviation electronics Company outperformed top- and bottom-line expectations. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Rockwell Collins most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
Rockwell Collins reported sales for the first quarter of fiscal year 2018 of $2.01 billion, a 69% increase from Q1 FY17 sales $1.19 billion, or 9% organic growth excluding $716 million of revenue from the acquisition of B/E Aerospace. The Company's sales topped analysts' estimates of $1.99 billion
Rockwell Collins reported earnings per share of $280 million, or $1.69 per diluted share, in Q1 FY18 compared to earnings of $145 million, or $1.10, in Q1 FY17. The Company's earnings for the reported quarter included a $0.37 per share discrete income tax benefit from the enactment of the Tax Cuts and Jobs Act. Rockwell Collins' adjusted earnings was $1.59 per diluted share for Q1 FY18 compared to $1.22 per share in the prior year's same quarter and came in ahead of Wall Street's estimates of $1.53 per share.
The Company's effective income tax rate was 18.3% on an adjusted earnings basis in Q1 FY18 compared to 28.8% in Q1 FY17.
Rockwell Collins' Segment Results
During Q1 FY18, the Commercial Systems segment's sales jumped 11% to $608 million compared to $549 million in Q1 FY17. The segment's Original equipment sales grew 7% to $339 million on a y-o-y basis, due to higher Airbus A350 and Boeing 737 production rates as well as higher business jet equipment deliveries. The Commercial Systems Segment's Aftermarket sales advanced 18% to $265 million on a y-o-y basis attributed to higher used aircraft equipment sales, higher regulatory mandate upgrade activity, higher spares provisioning, and higher service and support activity.
Commercial Systems' operating earnings increased 11% to $139 million and operating margin increased 10 basis points to 22.9% in Q1 FY18 due to increased earnings from higher sales volume and favorable sales mix.
The Interior Systems segment was created with the acquisition of B/E Aerospace on April 13, 2017. The segment contributed $656 million of sales and $94 million of operating earnings to Q1 FY18 results. Interior Systems' operating earnings for the reported quarter included $58 million of intangible asset amortization expense partially offset by $30 million of income from the amortization of acquired contract liabilities.
During Q1 FY18, the Government Systems' sales surged 21% to $573 million compared to $475 million in Q1 FY17. The segment's Avionics section's sales grew 4% to $333 million, driven by higher fixed wing development program sales as well as higher deliveries for various fighter platforms. The Government Systems Segment's Communication and navigation sales soared 54% to $240 million on a y-o-y basis due to the B/E Aerospace acquisition. In addition, communication and navigation sales increased 15% organically due to higher test and training range and legacy communication sales. Operating earnings for Government Systems climbed 14% to $109 million on a y-o-y basis and operating margin declined 120 basis points to 19.0%, as increased earnings from higher sales volume were tempered by unfavorable sales mix, higher employee compensation costs, and higher pre-production engineering amortization.
For Q1 FY18, Information Management Services (IMS) division's sales grew 3% to $174 million compared to $169 million in Q1 FY17. The segment's sales increased due to 8% growth in aviation related revenues driven by increased usage of connectivity services, partially offset by a decline of non-aviation revenues of 10% due to timing of equipment deliveries on nuclear security mandate programs. IMS' operating earnings fell 3% on a y-o-y basis to $29 million, while operating margin fell 110 basis points to 16.7% in Q1 FY18. The segment's operating earnings and margin declined due to asset disposition and customer bankruptcy costs in FY18, partially offset by increased earnings from higher sales volume.
Cash Flow
During Q1 FY18, Rockwell Collins' cash used for operating activities was $259 million compared to a use of cash of $101 million in Q1 FY17. The increase in cash used for operating activities was due primarily to higher payments for production inventory and other operating costs as well as higher employee incentive payments.
Stock Performance Snapshot
February 05, 2018 - At Monday's closing bell, Rockwell Collins' stock dropped 2.49%, ending the trading session at $134.25.
Volume traded for the day: 2.72 million shares, which was above the 3-month average volume of 1.10 million shares.
Stock performance in the previous six-month period – up 12.82%; and past twelve-month period – up 47.50%
After yesterday's close, Rockwell Collins' market cap was at $22.27 billion.
Price to Earnings (P/E) ratio was at 24.98.
The stock has a dividend yield of 0.98%.
The stock is part of the Industrial Goods sector, categorized under the Aerospace/Defense Products & Services industry.
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