UPDATE: Rockwell Collins Posts Higher Q1 Earnings, Lifts Full-Year Forecast

Shares of

gained more than 2% in pre-market trading after the company reported a rise in its earnings for the fiscal first quarter and lifted its profit forecast for the full year. The Cedar Rapids, Iowa-based company posted quarterly net earnings of $167 million, or $1.24 per share, compared to $131 million, or $0.96 per share, in the year-ago quarter. Its earnings from continuing operations climbed 29% to $1.26 per share from $0.98 per share. The latest quarter earnings included a benefit of $0.16 per share due to the retroactive extension of the Federal R&D tax credit. Its revenue surged 16% to $1.23 billion. However, analysts were expecting earnings of $1.13 per share on revenue of $1.22 billion. Cash used by operating activities climbed to $60 million in the quarter, versus cash used by operating activities of $24 million in the year-ago quarter. During the quarter, Rockwell Collins repurchased 2.2 million shares of common stock at a total cost of $174 million. It also paid a dividend on its common stock of $0.30 per share in the first quarter. "We're off to a great start on our fiscal 2015 plan," said Rockwell Collins Chief Executive Officer and President, Kelly Ortberg. "In the quarter we realized strong revenue growth in our Commercial Systems and Information Management Services businesses and a stabilization of revenues in our Government Systems business. With this return to top-line growth, we executed quite well and delivered improved margin performance. The results for the first quarter support our plan for double digit earnings per share and cash flow growth for fiscal year 2015." For the full year, Rockwell Collins now expects earnings of $5.10 to $5.30 per share, versus earlier outlook of $4.90 to $5.10 per share. It now projects cash flow from operations of $700 million to $800 million, versus prior forecast of $675 million to $775 million. Rockwell Collins shares surged 2.39% to $89.06 in pre-market trading.