Rockwell Collins Inc. COL reported financial results for second-quarter fiscal 2016 ended Mar 31, 2016. The company’s adjusted earnings per share of $1.30 surpassed the Zacks Consensus Estimate of $1.29 by 0.8%. Reported earnings also improved 6.6% from the adjusted profit level of $1.22 per share reported a year ago. RevenuesIn the fiscal second quarter, Rockwell Collins’ total sales were $1,311 million, missing the Zacks Consensus Estimate of $1,322 million by 0.8%. Revenues also dipped 2.2% year over year due to lower sales across Commercial Systems and Government Systems.Operational HighlightsTotal segment operating income during the quarter was $272 million, down 2.2% from $278 million in the year-ago quarter.Rockwell Collins’ total research and development investment (including the increase in pre-production engineering costs) was $242 million, down 6.2%. The figure represented 18.5% of quarterly sales.Segment PerformanceCommercial Systems: In the quarter under review, segmental sales of $611 million were down 1.3% year over year primarily due lower sales of original equipment and wide-body in-flight entertainment, which was partially offset by higher aftermarket sales.Government Systems: The segment reported sales of $538 million, down 5.1% due to lower contributions from Avionics, Communication and Navigation products sales.Information Management Services: Segment sales were $162 million, up from $155 million in the year-ago period on the back of aviation-related business growth.Financial ConditionAs of Mar 31, 2016, Rockwell Collins’ cash and cash equivalents were $300 million, compared with $252 million as of Sep 30, 2015.Long-term debt (net) was $1,383 million, as of Mar 31, 2016, down from $1,680 million as of Sep 30, 2015.Cash used for operating activities in second-quarter fiscal 2016 was $45 million, compared to $132 million a year ago.Fiscal 2016 GuidanceRockwell Collins reaffirmed its earnings guidance for fiscal 2016 in the range of $5.45−$5.65 per share on total revenue of $5.3−$5.4 billion. Total segment operating margin is still projected at about 21%.The company also reiterated its expectation of cash flow from operations between $750−$850 million. The company continues to expect R&D investment of approximately $1 billion and capital expenditure of $200 million.Our TakeAs the company had earlier said, the timing of its Government Systems program resulted in declines in the first half, which will be followed by growth in the second half of the year.At Commercial Systems, the production cut on Bombardier Globals was expected to impact the entire year, while growth from new acquisitions would primarily benefit the second half. The company also expected its overall business to grow throughout fiscal 2016, and deliver strong margin and cash flow performance.The Federal R&D Tax Credit was permanently reinstated, retroactive to Jan 1, 2015, which led to the acknowledgment of an 18-cent retroactive benefit. The company's effective income tax rate from continuing operations was 26.8% for the second quarter of 2016, compared to 32.4% in the prior fiscal year. Additionally, the company may continue to benefit from the Federal R&D Tax Credit throughout fiscal 2016.Upcoming Peer ReleasesRaytheon Company RTN is scheduled to release its first-quarter earnings on Apr 28, 2016. The Zacks Consensus Estimate stands at $1.36.L-3 Communications Holdings Inc. LLL is scheduled to release its first-quarter earnings on Apr 27, 2016. The Zacks Consensus Estimate stands at $1.59.Spirit AeroSystems Holdings, Inc. SPR is scheduled to release its first-quarter earnings on Apr 29, 2016. The Zacks Consensus Estimate stands at $1.06.Zacks RankRockwell Collins currently has a Zacks Rank #2 (Buy).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ROCKWELL COLLIN (COL): Free Stock Analysis Report SPIRIT AEROSYS (SPR): Free Stock Analysis Report RAYTHEON CO (RTN): Free Stock Analysis Report L-3 COMM HLDGS (LLL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research