Quick Facts
FONT-SIZE Plus   Neg
Share SHARE
mail  E-MAIL

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

RELATED NEWS
Trade LLL now with 
4/26/2012 8:52 AM ET

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.

Register
To receive FREE breaking news email alerts for L-3 Communications Holdings, Inc and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Chipmaker Advanced Micro Devices Inc. said Thursday after the markets closed that its first quarter loss narrowed from last year, helped by strong revenue growth in its graphics and visual solutions business. The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its quarterly revenue. After trending higher over the past few sessions, stocks showed a lack of direction throughout the trading day on Thursday. The major averages spent the session bouncing back and forth across the unchanged line before ending the day mixed. While the major averages closed on opposite sides of the unchanged line, they all showed only modest moves. U.S. Secretary Of State John Kerry said Thursday that he and his counterparts from Russia, Ukraine and the European Union have reached an agreement on a preliminary plan for ending the ongoing crisis in Ukraine. Kerry was speaking at the end of the Ukraine contact group's first meeting, comprising the foreign ministers of Russia, Ukraine, the EU and the U.S., in the Swiss city of Geneva.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.