Rockwell Collins beats by $0.02, misses on revs; increased mid-point of EPS guidance; to sell its satellite communications systems
Reports Q3 (Jun) earnings of $1.19 per share, $0.02 better than the Capital IQ Consensus Estimate of $1.17; revenues rose 11.7% year/year to $1.26 bln vs the $1.3 bln consensus; operating margin decreased 150 basis points.
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The fiscal year 2014 outlook has been updated due to the pending sale of Datapath and to narrow the ranges from the previous financial guidance: Co increased mid-point of EPS guidance due to improved Information Management Services earnings -- sees EPS of $4.45-4.55, prior $4.40-4.55 vs. $4.51 Capital IQ Consensus Estimate. Due to the pending sale of Datapath, the Company now expects fiscal year 2014 sales for the continuing operations of the Government Systems business to be down low-single digits (previously expected to be down mid-single digits). Co sees FY14 revs of $4.90 -4.95 bln, prior $4.95-5.05 bln, may not compare to $5.04 bln Capital IQ Consensus Estimate. Total segment operating margins ~21% (From 20% to 21%);
- The Company also announced it entered into an agreement to sell its satellite communications systems business formerly known as Datapath, which designs, manufactures and services ground-based satellite communication systems primarily for military customers. The sale is subject to customary closing conditions and is expected to close in the fourth quarter of fiscal 2014.
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