Rockwell Collins 3Q Results: Postgame Scorecard

For the third quarter, Rockwell Collins (NYSE:COL) saw a rise in net income.

Earnings and Revenue The company fell short of estimates with EPS of $1.14 a share and revenues of $1.21 billion. Analysts were expecting EPS of $1.15 a share and revenues of $1.24 billion. The estimates of 16 analysts ranged from profit of $1.09 to profit of $1.20.

The company's net income for the quarter was $166 million. This is 5.1% higher than the year-ago quarter. Revenue climbed 1.3% from $1.19 billion in the same period last year.

Company Fundamental Trends The company bounced back last quarter with a year over year revenue increase after two consecutive quarters of revenue declines.

History Against Expectations The company missed estimates last quarter after meeting expectations the quarter before. It reported net income of $1.09.

Official Comment: "In the current challenging market conditions, our balanced business model and capital deployment strategies are providing the stability and shareowner focus that you would expect from Rockwell Collins," said Rockwell Collins Chairman, President and Chief Executive Officer, Clay Jones. "For the first time in five quarters, Government Systems sales increased to complement moderating revenue in Commercial Systems due to difficult comparables and the impacts from a recent bankruptcy filing by one of our customers. However, despite this modest sales increase, earnings per share increased by double digits due to the increased level of share repurchases that has reduced share count by 7% this year. In addition, we increased our dividend this quarter by 25% to further enhance the return of value to our shareowners." Jones went on to state, "The slowdown in the global economic recovery and bankruptcy of Hawker Beechcraft continues to impact our initial projections of the business aviation growth. As a result, we have revised our 2012 sales, EPS and cash flow guidance. However, these near-term conditions have not diminished our confidence in longer term commercial growth as we look forward to several new product introductions in the years ahead."

Estimates provided by Zacks Investment Research and company fundamentals from Xignite Financials.