Esterline Technologies Corporation (ESL) has reported a 218.43 percent jump in profit for the quarter ended Dec. 30, 2016. The company has earned $16.19 million, or $0.54 a share in the quarter, compared with $5.08 million, or $0.17 a share for the same period last year.
Revenue during the quarter grew 3.68 percent to $457.73 million from $441.48 million in the previous year period. Gross margin for the quarter expanded 27 basis points over the previous year period to 31.47 percent. Total expenses were 93.45 percent of quarterly revenues, down from 96.12 percent for the same period last year. This has led to an improvement of 267 basis points in operating margin to 6.55 percent.
Operating income for the quarter was $29.98 million, compared with $17.12 million in the previous year period.
Curtis Reusser, Esterline's chief executive officer, said, "I am pleased with the results for the start of our fiscal year. First quarter revenues were just above the high end of our expected range and earnings in the quarter were well ahead of our expectations. The combination of modestly stronger than expected operating trends and a shift in the timing of taxes and R&D spend drove the improved earnings performance." Reusser added, "We continue to focus on execution and operational excellence to drive results for our stakeholders."
For financial year 2017, Esterline Technologies Corporation expects revenue to be in the range of $2,000 million to $2,050 million. The company projects diluted earnings per share to be in the range of $4.30 to $4.70. The company projects diluted earnings per share to be in the range of $4.50 to $4.90 on adjusted basis.
Working capital increases
Esterline Technologies Corporation has recorded an increase in the working capital over the last year. It stood at $773.21 million as at Dec. 30, 2016, up 10.49 percent or $73.42 million from $699.79 million on Jan. 01, 2016. Current ratio was at 3.11 as on Dec. 30, 2016, up from 2.76 on Jan. 01, 2016.
Cash conversion cycle (CCC) has increased to 87 days for the quarter from 86 days for the last year period. Days sales outstanding were almost stable at 37 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 66 days for the quarter compared with 67 days for the previous year period. At the same time, days payable outstanding went down to 16 days for the quarter from 17 for the same period last year.
Debt comes down marginally
Esterline Technologies Corporation has recorded a decline in total debt over the last one year. It stood at $838.16 million as on Dec. 30, 2016, down 1.20 percent or $10.15 million from $848.30 million on Jan. 01, 2016. Total debt was 28.63 percent of total assets as on Dec. 30, 2016, compared with 29.06 percent on Jan. 01, 2016. Debt to equity ratio was at 0.53 as on Dec. 30, 2016, down from 0.56 as on Jan. 01, 2016. Interest coverage ratio improved to 3.80 for the quarter from 2.37 for the same period last year.
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