What To Expect From Rockwell Collins (COL) In Q3 Earnings?
Zacks Investment Research | Jul 25, 2017 09:59PM ET
Aviation electronics maker, Rockwell Collins Inc. (NYSE:COL) , is slated to report third-quarter fiscal 2017 results on Jul 28, before the opening bell.
In the last reported quarter, the company delivered a positive earnings surprise of 2.29%. Moreover, it surpassed earnings estimates in each of the trailing four quarters with an average positive surprise of 2.45%.
Let’s see how things are shaping up for this announcement.
Factors at Play
In the defense arena, Trump’s victory in the Presidential race has likely turned out to be a significant growth catalyst for Rockwell Collins and other defense majors. In particular, the outlook for stocks in this space has improved manifold in the recent months, primarily owing to enhanced spending promises made by Trump in his latest “America First” budget.
Following Trump’s budget proposal release in Mar 2017, the U.S. defense contractors are witnessing increased order from across the world, which increases investors’ optimism in such stocks.
Consequently, during the fiscal third quarter, the company clinched a number of contracts. It signed a global alliance agreement with QinetiQ to collaborate on the development of next-generation, multi-constellation open service and secure Global Navigation Satellite System (GNSS) receivers. The accord will support the critical mission needs of military, government and critical national infrastructure.
Again, Rockwell Collins inked a reseller agreement with Beijing Marine Communication and Navigation Company, Limited (MCN) to provide broadband satellite connectivity services to its ARINC Direct customers in mainland China. These agreements are expected to have a material impact on the company’s financials in the to-be-reported quarter.
For the quarter, the Zacks Consensus Estimate for earnings reflects a 3.2% year-over-year decline. Meanwhile, revenues are estimated to be $2.03 billion, translating into 51.9% growth year over year.
Earnings Whispers
Our proven model does not conclusively show that Rockwell Collins will beat earnings this quarter. This is because a stock needs to have both a positive Original post
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