Ahead of the Bell: Esterline
Analyst sees recent acquisitions driving growth at Esterline
On Friday September 4, 2009, 7:46 am EDT
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Companies:Esterline Technologies Corp.
HARTFORD, Conn. (AP) -- Esterline Corp. benefited from recent acquisitions that should continue drive earnings and revenue growth, an analyst said Friday as he raised his profit estimates for the aerospace and defense contractor.
Analyst Howard A. Rubel of Jefferies and Co. said the Bellevue, Wash.-based company's strong fiscal third-quarter results reported Thursday were boosted by gross margin expansion in the company's avionics and controls segment, which was mainly driven by improved performance at its CMC Electronics business. Esterline acquired CMC in 2007.
Esterline also was helped by strong margins at its Racal acoustics business, which Esterline acquired in December.
Esterline said its third-quarter net income was $32.6 million, or $1.09 per share, up 59 percent from $20.5 million, or 68 cents per share, in the same period last year.
Sales of $361.5 million for the quarter ended July 31 were down slightly from $363.5 million in the year-earlier period.