Research Desk Line-up: Spirit AeroSystems Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 11, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Rockwell Collins, Inc. (NYSE: COL), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=COL, following the Company's release of its third quarter fiscal 2017 results on July 28, 2017. The aviation electronics Company outperformed top- and bottom-line expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Aerospace/Defense Products & Services industry. Pro-TD has currently selected Spirit AeroSystems Holdings, Inc. (NYSE: SPR) for due-diligence and potential coverage as the Company reported on August 02, 2017, its financial results for Q2 2017 driven by strong operating performance. Register for a free membership today, and be among the early birds that get access to our report on Spirit AeroSystems when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on COL; also brushing on SPR. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=COL

http://protraderdaily.com/optin/?symbol=SPR

Earnings Reviewed

Rockwell Collins reported Q3 FY17 sales of $2.09 billion, a 57% increase compared to sales of $1.33 billion in Q3 FY16. Excluding $695 million of revenue from the acquisition of B/E Aerospace the Company's revenue grew 5% on a y-o-y basis. Rockwell Collins' revenue numbers exceeded analysts' estimates of $2.03 billion.

For Q3 FY17, Rockwell Collins' earnings per share from continuing operations were $1.12 compared to $1.63 in Q3 FY16. The Company's adjusted earnings per share for the reported quarter were $1.64 compared to $1.67 in the prior year. Rockwell Collins' Q3 FY16 earnings per share and adjusted earnings per share included a $0.31 income tax benefit from the release of a valuation allowance related to a US capital loss carry forward. The Company's earnings numbers surpassed Wall Street's forecasts of $1.58 per share.

Segment Results

During Q3 FY17, Rockwell Collins Interior Systems, B/E Aerospace, which was acquired on April 13, 2017, represented the entirety of the Interior Systems segment and contributed $695 million of sales and $80 million of operating earnings. Interior Systems' operating earnings for the reported quarter includes $46 million of intangible asset amortization expense. On a pro-forma basis, sales for Interior Systems increased 9% on a y-o-y basis, primarily attributable to increased original equipment deliveries for Airbus A350 galleys and Boeing 737 advanced lavatories as well as oxygen systems across multiple platforms.

Rockwell Collins' Commercial Systems, which provides aviation electronics systems, products and services to air transport, business and regional aircraft manufacturers and airlines worldwide, reported sales of $658 million in Q3 FY17, up 8% compared to sales of $612 million in Q3 FY16. The segment's Original equipment sales grew 2% to $374 million due to higher product deliveries in support of Airbus A350, Boeing 737, and Bombardier C Series rate increases. Commercial Systems' aftermarket sales surged 18% to $279 million due to higher used aircraft equipment sales of $24 million, higher regulatory mandate upgrade sales, and higher spares provisioning. The segment's operating earnings increased 2% to $144 million and operating margin declined 110 basis points to 21.9%, as increased earnings from higher sales volume were tempered by low margin used equipment sales and higher amortization of pre-production engineering costs.

During Q3 FY17, Rockwell Collins' Government Systems sales totaled $558 million, up 1% on a y-o-y basis. The segment's Avionics sales declined 9% to $342 million, due to lower deliveries for various fighter platforms as a result of production issues, the wind-down of legacy tanker hardware deliveries, and lower rotary wing sales. Government Systems' Communication and Navigation sales surged 21% to $216 million, due to higher legacy communication product deliveries, higher deliveries of GPS-related products, and higher test and training range sales. During the reported quarter, the segment's operating earnings rose 7% to $123 million, while operating margin increased 130 basis points to 22.0% due to higher sales volume and favorable sales mix.

For Q3 FY17, Rockwell Collins' Information Management Services (IMS) sales increased 10% to $183 million, driven by a 9% growth in aviation related revenues in turn boosted by the usage of connectivity services. In addition, non-aviation revenues increased 10% on a y-o-y basis due to increased nuclear security mandate revenue. The segment's operating earnings surged 50% to $39 million and operating margin soared 570 basis points, both benefitting from higher sales volume and the favorable resolution of certain prior claims associated with international business jet support services.

Cash Matters

Rockwell Collins' cash provided by operating activities from continuing operations was $416 million for the first nine months of fiscal year 2017 compared to $223 million in the first nine months of the fiscal year 2016. The increase in cash provided by operating activities was due primarily to higher cash collections from customers, partially offset by higher production inventory and other operating costs, higher income tax payments, and B/E Aerospace acquisition-related expenses.

On August 01st, 2017, Rockwell Collins' Board of Directors declared a quarterly dividend of $0.33 per share on its common stock, payable September 05, 2017, to shareholders of record at the close of business on August 14, 2017.

Outlook

Rockwell Collins is forecasting FY17 revenue to be approximately $6.8 billion compared with its previous announcement of revenue in the range of $6.7 billion?$6.8 billion. The Company reaffirmed its adjusted earnings per share forecast in the band of $5.95?$6.15. Total segment operating margin is expected to grow in the range of 19%?20%.

Rockwell Collins is estimating free cash flow in the range of $650 million?$750 million. Interior Systems operating margins are projected to be in the range of 12% to 13% for FY17.

Stock Performance

On Thursday, August 10, 2017, the stock closed the trading session at $125.75, slightly falling 0.54% from its previous closing price of $126.43. A total volume of 2.37 million shares have exchanged hands, which was higher than the 3-month average volume of 1.74 million shares. Rockwell Collins' stock price skyrocketed 20.50% in the last three months, 38.92% in the past six months, and 49.31% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have soared 35.56%. The stock is trading at a PE ratio of 24.81 and has a dividend yield of 1.05%. At Thursday's closing price, the stock's net capitalization stands at $20.34 billion.

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