Rockwell Collins Backs FY14 View, Sees Growth Ahead, To Buy Back $500 Mln Shares

(RTTNews) - Communications and aviation electronics maker Rockwell Collins, Inc. (COL) on Friday confirmed its forecast for fiscal 2014 earnings and sales. For fiscal 2015, the company projects growth in earnings and sales. In addition, the company announced its Board of Directors has authorized an additional $500 million for share repurchases.

Chief Executive Officer and President Kelly Ortberg said, "We believe we have reached the bottom in our defense and business aviation cycles and we are now realizing the benefits of completing investments in development programs as new platforms enter service."

For fiscal 2014, Rockwell Collins continues to expect earnings per share in the range of $4.45 to $4.55, sales of approximately $4.90 billion to $4.95 billion, and operating cash flow of about $650 million.

On average, 18 analysts polled by Thomson Reuters expect full-year 2014 earnings of $4.51 per share, while 19 analysts expect revenues of $4.95 billion. Analysts' estimates typically exclude special items.

While announcing its third-quarter results in late July, the company had raised its earnings outlook due to improved information management services earnings, while trimming sales view.

Further, for fiscal 2015, Rockwell Collins projects earnings per share between $4.90 and $5.10, revenue between $5.2 billion and $5.3 billion, and cash flow from operations of $675 million to $775 million.

Analysts expect earnings of $4.94 per share on revenues of $5.25 billion for fiscal 2015.

Total segment operating margins for fiscal 2015 are expected to be in the range of 20.5 percent to 21.5 percent.

Segment-wise, the company expects commercial systems' revenue to increase by high-single digits, while Government Systems' revenues would be about flat.

In the Information Management Services unit, sales would approach double digit growth on a full fiscal year proforma basis driven by double digit growth in airline and business aviation related sales.

Rockwell Collins shares closed Thursday's trading at $77.80, up $0.49 or 0.63 percent.