Rockwell Collins Narrows 2016 Outlook

(RTTNews) - Rockwell Collin Inc. (COL) said that it narrowed the ranges for its financial outlook for fiscal year 2016.

The company now expects earnings per share for fiscal year 2016 to be in the range of $5.50 to $5.55, compared to prior estimate of $5.45 to $5.65. Annual total sales are now expected to be about $5.3 billion, compared to the previous outlook of $5.3 billion to $5.4 billion.

Cash flow from operations for the year is now expected to be about $750 million , compared to the prior guidance of $750 million to $850 million.

Analysts polled by Thomson Reuters expect the company to report earnings of $5.49 per share and revenues of $5.33 billion for fiscal year 2016. Analysts' estimates typically exclude special items.

Rockwell Collins Chairman, President, and Chief Executive Officer Kelly Ortberg said, "Lower-than-anticipated business aircraft OEM production rates and air transport aftermarket service and support sales have impacted our Commercial Systems revenue outlook. We now expect Commercial Systems sales to be down about 1% for the year. In addition, we now forecast our cash flow from operations at the lower end of the previously guided range due to the timing of receivable collections and higher spending for pre-production engineering costs. In spite of these market challenges, our strong operational performance has allowed us to narrow our earnings per share estimate for fiscal year 2016 within the previously guided range."

The company reported third quarter fiscal year 2016 earnings per share from continuing operations increased 23% to $1.63 compared to $1.33 in the prior year. Total sales in the third quarter of fiscal year 2016 were $1.33 billion, a 3% increase from the same period in fiscal year 2015.