logo
Plus   Neg
Share
Email

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

Defense contractor L-3 Communications Holdings Inc. (LLL) 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 RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
UBS Group AG Chief Executive Officer Sergio Ermotti said blockchain technology is almost a must for business. In an interview with CNBC, the head of the Swiss banking giant said he believes the technology is definitely an opportunity in the long term. According to him, the technology will help companies free up resources, and blockchain in particular is a great way to increase those efficiencies. In the age of social media, it takes mere hours for a company to suffer the backlash of of allegations of racism. For some companies, these incidents have hurt their bottom line and sullied their reputations. For others, they were a blip caused by clumsy if not altogether coincidental missteps. In... BJ's Wholesale Club Holdings Inc., which is planning a return to the public market, has set terms for its planned initial public offering or IPO. In a filing with the U.S. Securities and Exchange Commission, the warehouse club operator said Monday that it plans to offer 37.5 million shares priced between $15 and $17 per share. At the top end of the range, the offering would raise $637.5 million.
Follow RTT