Rockwell Collins Posts 13% FY 2015 Earnings Climb, Revenue Up 5%; CEO Kelly Ortberg on Currency Impacts, Budget Agreement

Rockwell collins logoRockwell Collins (NYSE: COL) — one of 30 companies listed on Executive Mosaic’s GovCon Index — has reported full fiscal year 2015 earnings of $5.19 per share to exceed 2014 figures by 14.82 percent.

The Iowa-based avionics maker’s most recent 2015 earnings outlook was for a range between $5.15 and $5.25 per share and Wall Street analysts expected Rockwell Collins to report $5.21 per share.

Rockwell Collins posted $1.38 earnings per share for the fourth quarter, a figure 2 cents below the consensus Wall Street analyst forecast.

Profit for the full fiscal year came increased 13.52 percent from 2014 to $686 million and full-year revenue showed a year-over-year climb of 5.22 percent to $5.24 billion.

The company, which runs its fiscal calendar on an October-September basis, reported $1.38 billion in fourth quarter revenue to fall short of analyst expectations by $30 million.

Rockwell Collins’ fiscal 2016 guidance issued in February forecasts between $5.20 and $5.40 earnings per share and a revenue range of $5.3 billion-to-$5.4 billion.

Fiscal 2015 revenue in the company’s government systems segment showed a nominal decline of 0.9 percent from 2014 and fourth quarter sales fell 4 percent year-over-year on lower Joint Tactical Radio System Manpack sales.

CEO Kelly Ortberg told investors in a subsequent call a strengthening U.S. dollar also put an estimated $40 million unfavorable impact on government systems revenue.

“On a constant currency basis, we grew a little in government systems this year, ” Ortberg said.

Ortberg also said the company’s baseline assumption for its fiscal 2016 outlook included a continuing resolution from Congress for one quarter but the two-year agreement sent to President Obama Friday morning offers more clarity.

Revenue in the commercial segment climbed 5.65 percent for the full year and was flat for the fourth quarter, while information management services showed a 32.27-percent increase from 2014 and a 5.96-percent rise for the fourth quarter

Shares in Rockwell Collins have risen 5.24 percent since the year’s start and are up 8.11 percent over 12 months.

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