L-3 Communication Holdings Inc. Earnings Cheat Sheet: Keeping the Profitability Streak Alive

S&P 500 (NYSE:SPY) component L-3 Communication Holdings Inc. (NYSE:LLL) reported its results for the third quarter. L-3 Communications is a system contractor in aircraft modernization and maintenance, serving customers in commercial telecommunications and government.

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L three Communication Holdings Earnings Cheat Sheet for the Third Quarter

Results: Net income for the aerospace/defense products and services company fell to $235 million ($2.24 per share) vs. $238 million ($2.07 per share) a year earlier. This is a decline of 1.3% from the year earlier quarter.

Revenue: Fell 1.3% to $3.79 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: LLL beat the mean analyst estimate of $2.15 per share. Analysts were expecting revenue of $3.85 billion.

Quoting Management: “Overall, we had a solid third quarter, underscored by strong orders, cash flow and EPS,” said Michael T. Strianese, chairman, president and chief executive officer. “Looking forward, our focus will be on strengthening the company by continuing our outstanding program performance, providing affordable solutions that address customer imperatives and deploying our capital and free cash flow in a balanced and disciplined manner to enhance shareholder value.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 4 cents in the second quarter, by 17 cents in the first quarter, and by 6 cents in the fourth quarter of the last fiscal year.

Revenue has fallen for the past three quarters. In the second quarter, revenue declined 5% to $3.77 billion while the figure fell 0.6% in the first quarter from the year earlier.

The company has now been profitable for the last nine quarters, and for the last five, profit has risen year over year by an average of 2.2%. The quarter with the biggest boost was the fourth quarter of the last fiscal year, which saw an 18.1% surge.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the fourth quarter is $2.49 per share, up from $2.44 ninety days ago. The average estimate for the fiscal year is $8.71 per share, a rise from $8.54 ninety days ago.

Competitors to Watch: Northrop Grumman Corp. (NYSE:NOC), FLIR Systems, Inc. (NASDAQ:FLIR), Cubic Corporation (NYSE:CUB), The Boeing Company (NYSE:BA), Rockwell Collins, Inc. (NYSE:COL), ITT Corporation (NYSE:ITT), Herley Industries, Inc. (NASDAQ:HRLY), Innovative Solutions & Support Inc (NASDAQ:ISSC), Implant Sciences Corp. (IMSC), and Irvine Sensors Corporation (IRSN).

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(Source: Xignite Financials)

 

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