L-3 Communications Holdings Earnings Preview: Can This Streak Continue?

L-3 Communications Holdings (NYSE:LLL) will report earnings before markets open on Thursday, July 25th. L-3 Communications Holdings, Inc. is a prime system contractor in aircraft modernization and maintenance, Command, Control, Communications, Intelligence, Surveillance and Reconnaissance (C3ISR) systems, and government services. The Company’s customers include the DoD, aerospace prime contractors, and commercial telecommunications customers.

Here is your Cheat Sheet to L-3 Communications Holdings Earnings:

Earnings Expectations: Analysts expect earnings of $1.93 per share on revenues of $3.05 billion. Currently, the company’s P/E ratio stands at 10.93.

Analyst Trends:

Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $2.05 to a profit $1.98. For the current year, the average estimate is a profit of $8.11, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how L-3 Communications Holdings has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 14,901 15,615 15,680 15,169 13,146
Diluted EPS ($) 7.72 7.61 8.25 9.03 8.30

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 3,558.00 3,283.00 3,560.00 3,185.00
Diluted EPS ($) 2.08 1.97 2.25 2.11

Past Performance:
L-3 Communications Holdings has beat analyst estimates 4 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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