Rockwell Collins (NYSE: COL) has narrowed full-year earnings and revenue guidance for its 2016 fiscal year as the avionics maker expects declines in production rates of commercial airplanes such as the Airbus A330 and business jets to impact sales in the commercial systems segment.
Cedar Rapids, Iowa-based Rockwell Collins now anticipates earnings for the fiscal year ending Sept. 30 in a range of $5.50 to $5.55 per share versus the previous $5.45-$5.65 EPS outlook with revenue at $5.3 billion compared to the prior $5.3 billion-$5.4 billion forecast.
Third quarter earnings for the GovCon Index-listed company came in at $1.63 per share to exceed Wall Street analyst forecasts by 4 cents and net income rose 20.22 percent to $214 million from the April-June 2015 period, which Rockwell Collins attributed in part to first quarter restructuring actions in the business aviation line.
Total revenue climbed 3.1 percent year-over-year to $1.33 billion versus analyst expectations of $1.35 billion, while government systems segment sales increased 4.71 percent to $555 million on higher sales in simulation and training programs and fixed-wing platforms.
Government systems revenue comprised 41.73 percent of overall third quarter sales compared to 40.98 percent in the same period last year.
As of Friday’s close, shares in Rockwell Collins have declined 7.13 percent since the start of the year and are down 2.88 percent over 12 months.