Rockwell Collins Raises FY 2016 Earnings Guidance on 1Q Beat; Govt Sales Down 13%

Rockwells Collins logo_GovConWireRockwell Collins (NYSE: COL) — one of 30 companies listed on Executive Mosaic’s GovCon Index — has reported earnings per share of $1.21 for the first quarter of the company’s 2016 fiscal year to exceed Wall Street analyst expectations by 21 cents.

Profit for the Cedar Rapids, Iowa-based avionics contractor came in at $135 million, a figure that includes approximately $45 million in restructuring charges on headcount actions focused in the company’s business aviation work and the latter figure amounts to 21 cents on a per share basis.

Rockwell Collins raised its fiscal 2016 earnings guidance to a range of $5.45 to $5.65 per share from the previous $5.20-$5.40 outlook on the reinstatement of a federal research-and-development tax credit, which the company said will positively impact its financial results throughout the fiscal year.

The company operates on a 52- or 53-week fiscal year that ends on the Friday closest to Sept. 30.

Revenue for the first quarter was $1.17 billion versus the consensus Wall Street forecast of $1.21 billion and approximately 4.88 percent lower than the prior year period, with government systems segment sales down 12.86 percent year-over-year to $451 million.

Rockwell Collins attributed the government sales declines to factors such as currency exchange rates that include a strengthening U.S. dollar, delivery timing in the E-6 program and the wind-down of an international electronic warfare program.

Sales guidance for fiscal year 2016 remains unchanged at a range of $5.3 billion to $5.4 billion.

Shares in Rockwell Collins are down 7.04 percent from the year’s start and have gained 0.23 percent over 12 months.

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