L-3 Communications Holdings 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.

L-3 Communications Holdings Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 5.73% to $2.03 in the quarter versus EPS of $1.92 in the year-earlier quarter.

Revenue: Decreased 10.29% to $3.19 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: L-3 Communications Holdings Inc. reported adjusted EPS income of $2.03 per share. By that measure, the company beat the mean analyst estimate of $1.93. It beat the average revenue estimate of $3.05 billion.

Quoting Management: “Our second quarter results were very good, underscored by strong orders, sales and EPS growth and solid cash flow. International and commercial sales rose 17%, offsetting declines in our U.S. national security-related businesses. We recorded several strategic new business wins during the quarter that expanded both our international and domestic security work, demonstrating that we continue to successfully execute our strategy to grow international and commercial sales and to increase market share. For the quarter, our funded orders were $3.5 billion, resulting in a book-to-bill ratio of 1.09,” said Michael T. Strianese, chairman, president and chief executive officer. “We continue to closely monitor the effects of sequestration and subsequent budget uncertainties. Although we have experienced some impacts from sequestration, including funding delays and cuts, award deferrals and staffing reductions at select customers, the result is manageable and we are taking the appropriate action at the affected business units.”

“We continued to execute on our commitment to deliver shareholder value by repurchasing $126 million of our common stock and paying dividends of $49 million during the quarter, resulting in $349 million of cash returned to our shareholders year-to-date. At the same time, we continue to increase the efficiency of our business units, invest wisely in R&D, ensure that our operations are appropriately sized, address important customer priorities, and pursue acquisition opportunities that strengthen and expand our business and customer base.”

Key Stats (on next page)…

Revenue increased 0.22% from $3.19 billion in the previous quarter. EPS decreased 3.79% from $2.11 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.98 and has not changed. For the current year, the average estimate is a profit of $8.11, which is the same with that ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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