* Q4 EPS from cont. ops $1.26 vs est $0.99
* Net sales fall 2 pct
* Sees 2010 EPS $3.20-$3.45 vs est. $3.49
* Sees 2010 rev up 3-5 pct
* Shares rise 7 pct after-market (Recasts; Adds conference call details, updates share movement)
Dec 10 (Reuters) - Aerospace and defense parts supplier Esterline Technologies ESL.N posted better-than-expected quarterly results, helped by strength in its avionics and controls segment, but forecast full-year earnings below estimates.
Passenger demand is halfway back from its low point, but the volume is still off 15 percent from 2008. In the near term the business jet market looks gloomy, a company executive said on a conference call with analysts.
The aerospace and defense parts supplier said it saw 2010 earnings in the range of $3.20 to $3.45 a share and revenue growth of 3 percent to 5 percent.
Analysts on average were looking for earnings of $3.49 a share, before special items, on revenue of $1.47 billion for 2010, according to Thomson Reuters I/B/E/S.
Anticipated lower margin sales mix early in the year, combined with extended holiday shutdowns and a higher tax rate indicate similar results to last year in the first quarter, the company said in a statement.
For the fourth quarter, net income was $34.5 million, or $1.15 a share, compared with $43.9 million, or $1.46 a share, a year ago.
Income from continuing operations was $1.26 a share.
Net sales fell 2 percent to $394.7 million but sales at the avionics and controls segment rose 18 percent to $204.2 million.
Analysts on average expected earnings of 99 cents a share, before special items, on revenue of $374.9 million. Shares of the company, which rose as much as 7 percent in extended trade, pared some gains and were up about 1 percent at $41.31. They closed at $41 Thursday on the New York Stock Exchange. (Reporting by Divya Sharma in Bangalore; Editing by Unnikrishnan Nair)