Esterline Technologies Corp. (NYSE: ESL), a manufacturing company serving aerospace and defense customers, reported its third-quarter financial results after-market close on Thursday. ESLâ€™s earnings for the third quarter fell short of estimates. However, shares surged on Friday as the companyâ€™s fourth-quarter earnings outlook beat estimates.
Bellevue, Washington-based Esterline Technologies reported third-quarter earnings from continuing operations of $35.1 million, or $1.12 per share, compared to $37.7 million, or $1.21 per share reported for the same period in the previous year. ESLâ€™s third-quarter earnings fell short of consensus forecast of $1.13 per share.
Sales for the third quarter ended July 27, 2012 were $485.9 million, compared to $409.5 million reported for the same period in the previous year.
CEO Brad Lawrence said that he expects a rebound to finish the year as discrete events that impacted the third quarter are abating and improvements at the companyâ€™s Avionics Systems, Control Systems, and Engineered Materials operations will contribute to a strong fourth-quarter performance.
For the fourth quarter, ESL expects earnings to be between $1.60 per share and $1.70 per share, which is well above the consensus forecast of $1.59 per share. For the full fiscal year 2012, ESL expects adjusted earnings to be between $4.90 per share and $5 per share, compared to consensus forecast of $4.92 per share.
Lawrence said that the companyâ€™s solid backlog positions it to drive growth and capture additional profitability in fiscal 2013.
Commenting on ESLâ€™s broader business, Lawrence said that ESL is well positioned to benefit from further strengthening in the commercial aerospace cycle and continues to increase its content on a number of key aircraft programs.
ESL shares rose to an intra-day high of $60 on Friday before finishing the day 12.96% higher at $59.80 on above average volume of 1.15 million.
Year-to-date, the stock gained 6.84%, compared to a gain of 11.84% for the S&P 500.