Esterline Technologies Corporation (ESL), the specialized defense parts manufacturer, reported fourth quarter 2009 results on Dec 10 that beat on the Zacks Consensus Estimate by 27 cents. It was the second quarterly beat in a row.

Earnings per share were $1.26 compared to the consensus of 99 cents. Earnings were $1.38 in the year ago quarter.

The quarter was boosted by the Canada-based avionics operation where R&D investments in the new T-6B military trainer cockpit and C-130 avionics retrofit programs are now contributing.

Fiscal 2010 Outlook

The company gave guidance about fiscal 2010. It expects revenue to grow 3% to 5%. Earnings per share are expected in the range of $3.20 to $3.45.

Currently analysts are slightly higher than the forecast range. The 2010 Zacks Consensus Estimate is at $3.48, up 4 cents in the last month. Analysts will, obviously, be revising estimates given the company’s guidance.

Value Fundamentals

It’s been awhile since I covered Esterline. The company is now a Zacks #2 Rank (buy) stock. It still has excellent value characteristics. Esterline is trading with a forward P/E of 11.85 and has a price-to-book ratio of just 0.98.

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service.

Zacks Investment Research

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