Exelis Earnings: Here’s Why Investors are Happy Now

Exelis (NYSE:XLS) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.26%.

Exelis Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 10.87% to $0.41 in the quarter versus EPS of $0.46 in the year-earlier quarter.

Revenue: Decreased 9.28% to $1.25 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Exelis reported adjusted EPS income of $0.41 per share. By that measure, the company beat the mean analyst estimate of $0.37. It beat the average revenue estimate of $1.23 billion.

Quoting Management: “During the second quarter, we demonstrated particular success in both retaining core programs and in securing a wide variety of new business across both segments,” said Exelis CEO and President David F. Melcher. “We remain on-track to deliver results in line with our expectations for 2013 and will continue to proactively align our strategy and operations with the market environment to deliver affordable, world-class solutions for our customers.”

Key Stats (on next page)…

Revenue increased 5.57% from $1.19 billion in the previous quarter. EPS increased 78.26% from $0.23 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.42 to a profit $0.43. For the current year, the average estimate has moved up from a profit of $1.48 to a profit of $1.50 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)