Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

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.

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

Quick Facts

Editors Pick
Texas Instruments Inc., the world's largest maker of analog chips, said Monday after the markets closed that its second quarter profit rose 3% from last year, as revenue increased 8%. The company's quarterly earnings per share also came in above analysts' expectations as did its quarterly revenue. At the same time, the company gave an upbeat outlook for the third quarter. After coming under pressure in early trading on Monday, stocks regained some ground over the course of the trading session but still closed modestly lower. The pullback on the day partly offset the strength that was seen last week. With his second term becoming increasingly dominated by turmoil overseas, President Barack Obama addressed both the conflict in Gaza and the Malaysia Airlines crash in Ukraine in remarks on Monday.
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.