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L-3 Communications (LLL) Beats on Q3 Earnings, Revenues Miss

Zacks Equity Research

L-3 Communications Holdings Inc. LLL is a leading supplier of a broad range of products and services used in a number of aerospace and defense platforms. The company is focused on consolidating its operations through acquisitions to improve its competitiveness. A robust financial position allows the company to continue with its acquisitions and create shareholder value at the same time.

However, the company has been witnessing weak performance in some of its product lines. The most worrying aspect of this is the downward trend in margins for service-related work due to competitive pressure.

Coming to the earnings surprises history, L-3 Communications has reported positive earnings surprises in the last four quarters with an average beat of 16.86%.

Zacks Rank

Currently, L-3 Communications has a Zacks Rank #3 (Hold), but that could definitely change following L-3 Communications’ earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

We have mentioned below some of the vital information from this just-revealed announcement:

Earnings Beat

Our consensus called for third quarter EPS of $1.82, and the company reported adjusted EPS of $1.88.

Revenue Miss

The company posted revenues of $2,505 million in third quarter, compared to our consensus estimate of $2,561 million.

L-3 COMM HLDGS Price and EPS Surprise

L-3 COMM HLDGS Price and EPS Surprise | L-3 COMM HLDGS Quote

Key Developments to Note

The company reported a 22.2% year over year increase in its funded orders in the third quarter as compared to the prior-year period. The funded orders for the reported quarter were $2.7 billion.

The company now expects its adjusted earnings guidance to the range of $7.85−$7.95 per share (versus its prior guided range of $7.65−$7.85 per share) with revenues of $10,250 −$10,350 billion (versus its prior guided range of $10,150 −$10,250 billion) for the year.
Check back later for our full write up on this L-3 Communications earnings report later!

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