L-3 Communication Holdings Inc. Second Quarter Earnings Preview

S&P 500 (NYSE:SPY) component L three Communication Holdings Inc. (NYSE:LLL) will unveil its latest earnings on Thursday, July 28, 2011. L-3 Communications Holdings Inc. is a system contractor in aircraft modernization and maintenance, serving customers in commercial telecommunications and government.

L three Communication Holdings Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $2.11 per share, a rise of 3.4% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $2.10. For the year, analysts are projecting net income of $8.54 per share, a rise of 2.4% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 17 cents, reporting profit of $1.95 per share against a mean estimate of net income of $1.78 per share.

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Wall St. Revenue Expectations: On average, analysts predict $3.84 billion in revenue this quarter, a decline of 3.3% from the year ago quarter. Analysts are forecasting total revenue of $15.52 billion for the year, a decline of 1% from last year’s revenue of $15.68 billion.

Analyst Ratings: Analysts seem relatively indifferent about L three Communication Holdings with 14 of 17 analysts surveyed maintaining a hold rating.

Key Stats:

The decrease in profit in the first quarter comes after net income rose in the previous quarter. In the first quarter, net income fell 7.7% to $204 million. In the fourth quarter of the last fiscal year, net income rose 18.1%.

Revenue fell in the first quarter after seeing a rise the quarter before. Revenue dropped 0.6% to $3.6 billion in the first quarter from the year earlier. In the fourth quarter of the last fiscal year, revenue rose 1.1%.

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) and Irvine Sensors Corporation (IRSN).

Stock Price Performance: During April 27, 2011 to July 22, 2011, the stock price had risen $3.21 (4%) from $79.69 to $82.90. The stock price saw one of its best stretches over the last year between April 18, 2011 and April 28, 2011 when shares rose for eight-straight days, rising 7.3% (+$5.41) over that span. It saw one of its worst periods between July 1, 2011 and July 18, 2011 when shares fell for 11-straight days, falling 8.3% (-$7.31) over that span. Shares are up $13.18 (+18.9%) year to date.

(Source: Xignite Financials)

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