Once these most recent quarterly results are finalized, they will be run through TheStreet.com Ratings' model and our ratings will be adjusted accordingly. To keep up to date on all of our ratings, visit TheStreet.com Ratings Screener. On May 28, 2009, Esterline Technologies ( ESL) reported an increase of 2.1% in its Q2 FY09 earnings, driven by improved revenues year-over-year, dragged down by customers reducing inventory levels. Net income increased to $25.71 million or $0.86 per share from $25.19 million or $0.84 per share a year ago. Income from continuing operations grew 5.8% to $25.34 million or $0.85 per share, which missed the most recent consensus estimate of $0.96 per share. Total revenue increased to $359.50 million from $358.03 million in Q2 FY08, led by a surge in its Avionics and Controls segment sales, partially offset by declining orders on the back of decreasing commercial aviation demand. Revenue from Avionics and Controls rose 14.9% to $169.11 million from $147.17 million. However, revenue from Sensors and Systems declined 10.9% to $86.76 million from $97.33 million, and that from Advanced Materials decreased 8.7% to $103.64 million from $113.53 million on a year-over-year basis. Cost of sales increased 4.3% to $246.90 million from $236.65 million. Gross profit margin declined 260 basis points to 31.30% from 33.90% in Q2 FY08. This decline was due to currency related mark-to-market requirements, adjustments to long-term contracts and the impact of starting a new manufacturing facility in Mexico. Additionally, selling, general, and administrative expenses fell 5.3% to $54.62 million from $57.70 million, while research, development, and engineering expenses plummeted 27.0% to $18.29 million from $25.05 million in same quarter a year ago. Meanwhile, the company emphasized that its backlog exceeds $1.00 billion. ESL added that the 787, the Joint Strike Fighter and the T-6B military trainer will be successful programs for the company. For FY09, the company reduced its earnings per share guidance to range between $3.00 and $3.20 due to uncertainty in the industry, declining business jet and spare parts demand, and potential timing issues with foreign shipments of countermeasure flares.
More from Stocks
Netflix, Japan Exports, TSMC Outlook, Musk and Brexit - 5 Things You Must Know
Netflix loses subscribers, Japan loses steam, Taiwan Semi bets on a chip-sector rebound, Britain stares down the abyss of a non-deal Brexit and Musk looks to your brain for his next startup fix.
Dow Futures Slip, Global Stocks Slide, as Tech Earnings, Trade Data Rattle Bulls
U.S. equity futures are pointing to a third day of declines on Wall Street Thursday as investors react to weaker-than-expected earnings in the tech and industrial sectors and signal increasing concern for the fate of U.S.-China trade talks.
Netflix's 'Troubling' Subscriber Miss Suggests It's Approaching a Price Ceiling
Netflix reported just 2.7 million new subscribers in the second quarter, which included a net loss of 130,000 in the U.S. Last quarter was the first time Netflix has lost domestic subscribers in the years it's been reporting streaming separately.
Big Tech and CSX Get Railroaded: Jim Cramer on What it Means for the Markets
Jim Cramer weighs in on why he's keeping a close eye on Big Tech as Facebook, Amazon and Alphabet head to Capitol Hill, CSX's earnings and his thoughts on the financial sector post-big bank earnings.