Esterline Technologies Corporation ( ESL - Free Report) , a Zacks Rank #5 (Strong Sell) designs, manufactures, and markets engineered products and systems primarily for aerospace and defense customers in the United States and internationally. The Company designs, manufactures and markets engineered products and systems for application within the industries it serves. The Company operates through three segments: Avionics & Controls, Sensors & Systems, and Advanced Materials. Recent Earnings Data ESL reported Q4 17 earnings on November 10th, where they significantly missed both the Zacks consensus earnings and revenue estimates for the second consecutive quarter. Specifically, revenues were down -2.3% YoY, and EPS was down -35.2% YoY. The declines in both the top and bottom lines were attributed to the Advanced Materials segment, and the planned improvement of operational efficiencies at Kirkhill (plant that produces highly engineered, organic, and in-organic elastomer based products) stalling in Q4 17. FY 2018 Expectations Reduced Due to the issues facing the company, and the poor earnings report, management cut Fiscal Year 2018 estimates in several key areas; revenues are now expected to be in the range of $2.025-2.075 billion vs. the expected $2.06 billion, GAAP EPS has been cut to a range of $3.65-4.05 vs. the expected $4.98, Free Cash Flows (FCF) have been cut to a range of $105-130 million vs. the expected $191 million. Lastly, management commented that these numbers are assuming that the Advanced Materials segment is unchanged which given the past quarters performance is not guaranteed. Management’s Take According to Curtis Reusser, CEO, “ We were disappointed with our fourth quarter results, as performance in our Advanced Materials segment was well below our expectations and has impacted our 2018 outlook. Underperformance was concentrated in our Kirkhill operations, where, despite continued focus and effort across the business, progress toward achieving operating efficiencies stalled in the fourth quarter. We are intensifying our remediation efforts, taking immediate and wide-ranging actions to improve operational performance while simultaneously evaluating all strategic options for this business.” Price and Earnings Consensus Graph As you can see in the graph below, both the stock price and future consensus earnings estimates declined after the quarterly miss and reduction in guidance.