Rockwell Collins (NYSE: COL) reported fourth quarter and full fiscal year 2016 earnings figures above Wall Street’s expectations Sunday as the avionics companyÂ embarks on itsÂ largest-ever acquisition.
GovCon Index-listed Rockwell Collins said July-September earnings were $1.58 per share versus analyst forecasts of $1.57 while full-year EPS totaled $5.51 to exceed the $5.50 Wall StreetÂ outlook.
Total fourthÂ quarterÂ revenue for the Cedar Rapids, Iowa-based company climbed 4.34 percent to $1.45 billion andÂ full-year sales for 12 months ending Sept. 30, 2016 held flat year-over-year at $5.26 billion.
Wall Street analysts expected the company to report $1.48 billion in third quarter revenue and $5.3 billion in full-year sales.
Declines in commercial productionÂ ratesÂ that included Airbusâ A330Â affected avionics equipment sales, Rockwell Collins said.
Fourth quarterÂ revenue in the company’s government systems segment rose 13.94 percent to $662 million on higher fixed-wing platform, simulation and training program sales.
Government system revenue for the full 2016 fiscal year climbed 0.86 percent to $2.2 billion and represent approximatelyÂ 41.95 percent of overall company salesÂ at roughly the same ratio in FY 2015.
Net income for the July-September period increased 13.04 percent to $208 million and full-year profit roseÂ 6.12 percent to $728 million.
Rockwell CollinsÂ disclosed fiscal year 2016 resultsÂ Sunday with anÂ additional announcement that the avionics company will buyÂ airline cabin equipment supplier B/E Aerospace (Nasdaq: BEAV) for approximately $6.4 billion cash-and-stock, or $62 per share.
The deal’s valueÂ comprises $34.10 per share in cash and $27.90 in shares of Rockwell Collins’ stock to represent a 23-percent premium over B/E’s $50.61 closing price Friday.
Rockwell Collins expects to close the deal in Spring 2017 and the combined company to haveÂ on a pro-forma basis 30, 000 employees, $8.1 billion in revenues and $1.9 billion in earnings before tax, debt, taxes and amortizationÂ for the 12Â months ending Sept. 30, 2016.
Excluding B/E Aerospace results, Rockwell Collins expects to record $5.3 billion-$5.4 billion in revenueÂ for its 2017 fiscal year that started Oct. 1 with assumptions that government systems segment sales will grow low-to-mid single digits, commercial will hold flat and information management services will climb mid-to-high single digits.
B/E Aerospace shareholders will own approximately 20 percent of the combined company.
As of Friday’s close, shares in Rockwell Collins have declined 8.49 percent since the start of the year and are unchanged over 12 months.
By comparison, the GovCon Index has risen 5.11 percent on a year-to-date basis and is up 6.27Â percent for 52 weeks.