(Adds detail from conference call, analyst comments, share price)
July 28 (Reuters) - Aircraft components maker Rockwell Collins Inc on Friday posted adjusted earnings that beat expectations, sending its shares up sharply after its first results including recently acquired aircraft interiors maker B/E Aerospace.
The acquisition, which closed in April, had raised concern about how aircraft interiors and seats would complement Rockwell's broad avionics business, which spans commercial jetliners, business jets and fighter aircraft.
But analysts pointed to a relatively strong quarter for Rockwell, which produced 5 percent sales growth without B/E Aerospace.
Rockwell also reported higher profit margins and more cash than expected, and sounded an optimistic note about the depressed business-jet market.
"Don't fall off your chair when I say this, we're actually going to see growth in our (sales to) bizjet (manufacturers)" in 2019, Chief Executive Kelly Ortberg said on a conference call with analysts.
Shares were up 3.7 percent to $113.04 in morning trading.
Adjusted earnings at the Cedar Rapids, Iowa-based company fell to $1.64 a share in the fiscal third quarter ended June 30, from $1.67 a year ago, but beat analysts' estimates of $1.58. Prior-year third-quarter earnings included a tax benefit of 31 cents a share, the company said.
The latest results included $82 million in expenses related to the B/E Aerospace acquisition, including $18 million in financing.
Sales were reduced somewhat by production problems with heads-up displays for fighter aircraft. Ortberg said the problem would be largely fixed in the fourth quarter and had not caused manufacturers to delay aircraft deliveries.
Revenue rose 57 percent to $2.09 billion, and Chief Financial Officer Patrick Allen said he expects the full-year tally to be slightly above the $6.8 billion forecast that Rockwell affirmed on Friday.
Net income fell to $179 million, or $1.12 a share, from $214 million, or $1.63 a share, a year earlier. (Reporting by Alwyn Scott in New York and Arunima Banerjee in Bengaluru; Editing by Anil D'Silva and Dan Grebler)