Esterline Technologies Corp. (NYSE: ESL), a manufacturing company serving aerospace and defense customers, reported its third-quarter financial results after-market close on Thursday. ESL’s earnings for the third quarter fell short of estimates. However, shares surged on Friday as the company’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. ESL’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 company’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 company’s solid backlog positions it to drive growth and capture additional profitability in fiscal 2013.
Commenting on ESL’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.
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