L-3 Communications Earnings: Everything You Must Know Now

L-3 Communications Holdings Inc. (NYSE:LLL) 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.

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L-3 Communications Holdings Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 5.82% to $2.00 in the quarter versus EPS of $1.89 in the year-earlier quarter.

Revenue: Decreased 11.23% to $3.19 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: L-3 Communications Holdings Inc. reported adjusted EPS income of $2.00 per share. By that measure, the company beat the mean analyst estimate of $1.94. It beat the average revenue estimate of $3.04 billion.

Quoting Management: “We started off the year with a solid first quarter, underscored by strong results of operations and cash flows in spite of the ongoing challenges in the defense industry. International and commercial sales rose 18% offsetting declines in our U.S. military business, demonstrating that we are successfully executing on our strategy to grow international and commercial sales and expand market share,” said Michael T. Strianese, chairman, president and chief executive officer. “The Sequester cuts to the U.S. Defense budget became effective on March 1st, and while we have not yet experienced major impacts, we are seeing some delays and reduced orders, contract award deferrals and staffing reductions at select customers. We continue to closely monitor the Sequester situation and are prepared to effectively manage it as it evolves.”

Key Stats (on next page)…

Revenue decreased 10.53% from $3.56 billion in the previous quarter. EPS decreased 11.11% from $2.25 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 $1.87 to a profit $1.93. For the current year, the average estimate has moved up from a profit of $7.98 to a profit of $8.22 over the last ninety days.

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