L-3 Communications (LLL) Signs NGA Contract worth $218M
L-3 Communications Holdings Inc.’s (LLL) unit National Security Solutions (“L-3 NSS”) has won a five-year contract with an expected value of $218 million from the National Geospatial-Intelligence Agency (“NGA”) to provide information technology services.
The defense company won the NGA’s Information Technology Enterprise Managed Services Transport Services contract, which entitled it to provide engineering, operations and sustainment services.
The contract work will comprise projects that meet IT mission needs. Moreover, L-3 Communications will provide a range of services to the global communication infrastructure of the NGA.
The company will provide wired and wireless Local Area Networks (“LANs”) and Wide Area Networks (“WANs”) inclusive of the associated equipments, security devices and cable infrastructure. These services will ensure safe, proper, reliable and rapid transmission of data.
L-3 Communications intends to make substantial gain from this contract. Through this transaction, the company expects to expand its footprint into the sphere of Intelligence Sector services.
Based in New York, L-3 Communications is one of the prime contractors in the field of national security solutions. It also provides various communication and electronic devices to be used in military and commercial platforms.
L-3 Communications recently posted third-quarter earnings in line with the estimates. Reported earnings of $1.85 per share were however lower than the previous year’s adjusted earnings of $1.93 per share. Revenues lagged estimates and also registered a fall of 2% on a year-over-year basis. The company’s third-quarter results were hurt by lower sales, weakness in its aerospace segment and order delays.
L-3 Communications holds a Zacks Rank #4 (Sell). Better-ranked stocks in the same sector include Spirit AeroSystems Holdings, Inc. (SPR), Teledyne Technologies Inc. (TDY) and Rockwell Collins Inc. (COL). While Spirit AeroSystems Holdings and Teledyne Technologies hold a Zacks Rank #1 (Strong Buy), Rockwell Collins carries a Zacks Rank #2 (Buy).
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