U.S. aerospace and defense company Rockwell Collins Inc. missed market expectations for its fiscal third-quarter earnings despite posting year-over-year growth.
The company's net income rose to $275 million, or $1.66 per share, in the quarter that ended June 30, from $179 million, or $1.12 per share, in the prior-year period.
On an adjusted basis, Rockwell Collins earned $1.73 per share in the quarter, below the S&P Capital IQ normalized consensus estimate of $1.87 per share. Adjusted EPS was $1.64 a year ago.
Rockwell Collins said its fiscal third-quarter EPS included impairment charges and a contract issue settlement worth 23 cents, and discrete benefit from the enactment of the 2017 U.S. tax law and from pension contribution worth 42 cents.
The avionics and information technology systems and services provider reported revenue of $2.21 billion in the quarter, up from $2.09 billion a year earlier, with all business segments posting sales growth.
Rockwell Collins CEO and President Kelly Ortberg said the company continues to prepare for its merger with United Technologies Corp. The deal is expected to close in the third quarter of 2018.
"I'm confident that those efforts, along with strong market conditions, will allow us to hit the ground running at the anticipated close," Ortberg said.