logo
Share SHARE
FONT-SIZE Plus   Neg

L-3 Communications Q1 Results Beat Estimates; Lifts Full-year Guidance

Defense contractor L-3 Communications Holdings Inc. (LLL: Quote) reported Thursday a small drop in first-quarter profit as sales edged down. However, the results were better than analysts' estimates. The company also lifted its full-year guidance.

Net income attributable to L-3 dropped a percent to $201 million from $204 million last year, but earnings per share grew 9 percent to $2.01 from last year's $1.85 on lower shares outstanding.

Net sales edged down 0.4 percent to $3.59 billion from $3.60 billion last year.

On average, analysts polled by Thomson Reuters expected the company to earn $1.88 per share on revenues of $3.46 billion.

Michael Strianese, chairman, president and chief executive officer, said, "Orders grew 22% compared to last year, driven by several international new business wins and earlier than expected orders for several of our DoD and international contracts, resulting in a book-to-bill ratio of 1.14x. We ended the quarter with funded backlog of $11.4 billion."

Looking ahead, the company lifted its earnings guidance to a new range of $8.45 to $ 8.60 per share from the previous estimate of $8.35 to $ 8.55 per share. It anticipates net sales to be between $14.55 billion and $14.75 billion, up from the prior forecast of $14.40 billion to $14.60 billion.

Analysts expect earnings of $8.49 per share on revenues of $14.49 billion for the year.

The company cited the acquisition of the Kollmorgen Electro-Optical business and the re-alignment of the TRL business as reasons for the guidance update.

LLL also noted that the guidance continues to include the estimated results of the Engility businesses and excludes $15 million of estimated spin-off transaction expenses. L-3 expects to complete the spin-off around the middle of 2012.

"During the quarter, we repurchased $138 million of our common stock and paid dividends of $49 million, and our board of directors increased L-3's quarterly cash dividend by 11% to $0.50 per share. This dividend increase marks our eighth consecutive annual increase," Strianese added.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Lender Barclays Plc. Tuesday said full-year profit before tax declined 21 percent from last year, hit by items. The company noted that its Personal and Corporate Banking or PCB and Barclaycard businesses continued to thrive and grow, while Africa Banking did well despite currency headwinds. The company saw encouraging performance in several areas of Investment Bank. Fox News pundit Bill O'Reilly remains under fire amid accusations that he trumped up his role in covering international events. Only weeks after a Mother Jones article raised doubts about his claims that he was in the "warzone" during the Falklands War, the Washington Post noticed that O'Reilly once... PayPal, the online payment unit of Ebay, said it has agreed to buy mobile payment company Paydiant as part of efforts to expand its mobile offerings for merchants. The deal comes at a time when the mobile payment space is suffused with prominent players like Apple and Google, with retailers seeking their own mobile payment applications.
comments powered by Disqus
RELATED NEWS
Trade LLL now with 
Follow RTT