Esterline (ESL) shares slumped to a fresh two-year low Friday morning after the specialty manufacturer serving the global aerospace and defense markets, reported an unexpected drop in fiscal third-quarter profit and revenue, and cut its guidance on full-year results.
After the close on Thursday, the company reported that GAAP earnings from continuing operations fell to $30.2 million, or $0.97 per diluted share, for the three months ended July 31, from $39.8 million, or $1.22 per diluted share, in the prior-year period. Adjusted earnings from continuing operations were $1.33 per diluted share, trailing the $1.42 average estimate of 10 analysts polled by Capital IQ.
Q3 revenue declined 2% to $496.2 million from $506.3 million year-over-year, also missing the Wall Street consensus of $531 million. The company said it now expects full-year revenue to be in a range of $1.78 billion to $1.80 billion, down from a prior view of $1.825 billion to $1.875 billion. Full-year adjusted earnings from continuing operations are expected in a range of $4.35 to $4.45 per diluted share, down from $4.55 to $4.80 as reported in the second quarter 2015 report.
Analysts are looking for earnings of $4.71 a share and revenues of $1.86 billion. Shares of the Bellevue, Washington-based company last traded at $76.33 with a new 52-week range of $75.56 to $120.71.
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