Business

April 26, 2012

L-3 Communications first quarter beats street; shares surge

L-3 Communications Holdings Inc.’s net income edged lower in the first quarter as governments spent less on its services.

It was still good enough to beat Wall Street expectations, however, and the defense contractor boosted its full-year earnings guidance as well, sending shares up 6 percent April 26.

L-3’s net income for the three months ended March 31 fell to $201 million, or $2.03 per share, from $203 million, or $1.85 per share in the same period a year earlier.

The result was hurt by higher tax expenses and lower revenue from L-3’s government services segment, which includes communication software support, IT services, engineering services and technical and management services.

The Pentagon is cutting back on spending and expectations for the entire section have been lowered.

Overall revenue fell slightly, to $3.59 billion from $3.6 billion in 2011. The government segment results were weaker because of much-lower revenue from Engility Corp., a subsidiary specializing in systems engineering, training and operational support for U.S. government agencies.

L-3 says it plans to spin off Engility into a separate company later this year. L-3 recorded a $6 million charge in the first quarter for expenses related to the Engility spinoff.

Revenue increased for L-3’s other segments that break out financial results: command, control, communications, intelligence, surveillance and reconnaissance systems; aircraft modernization and maintenance; and electronic systems.

Analysts projected net income of only $1.85 per share on revenue of $3.4 billion.

L-3 now expects to earn $8.45 to $8.60 per share this year on revenue of $14.55 billion to $14.75 billion. That compares with previous guidance of $8.35 to $8.55 per share on revenue of $14.40 billion to $14.60 billion.

On average, analysts surveyed by FactSet were expecting per-share earnings in 2012 of $8.48 on revenue of $14.28 billion. AP

 




All of this week's top headlines to your email every Friday.


 
 

 

Headlines July 31, 2015

News: Carter: Military leaders could arm more troops at home – Following the recent fatal shooting of four Marines and a sailor in Tennessee, Defense Secretary Ash Carter is ordering the military services to consider new policies that would enhance security for troops at home, including potentially arming more personnel.   Business: DOD weighs supplier base,...
 
 

News Briefs July 31, 2015

U.S. delivering eight newer F-16 warplanes to Egypt The United States Embassy in Cairo says the U.S. is delivering eight newer F-16 warplanes to Egypt as part of an ongoing military support package. It says in a July 30 statement that the aircraft, of the current Block 52 production variant, will be flown in from...
 
 
Lockheed Martin photograph

Lockheed Martin successfully tests design changes for Orion spacecraft’s fairing separation system

Lockheed Martin photograph A protective panel for Orion’s service module is jettisoned during testing at Lockheed Martin’s Sunnyvale, California facility. This test series evaluated design changes to the spacecraft’s fair...
 

 

Australian company to provide parts for initial production of Triton UAS

Northrop Grumman has awarded the first Australian supplier contract for the U.S. Navy’s MQ-4C Triton unmanned aircraft system initial production lot to Ferra Engineering. Brisbane-based Ferra Engineering will manufacture mechanical sub-assemblies for the first four Triton air vehicles including structural components. “At Northrop Grumman it’s very important to not only develop...
 
 
Boeing photograph

CH-46 ‘Phrog’ makes its last hop

Boeing photograph The CH-46 Sea Knight helicopter commonly known as the “Phrog,” is set to retire and to be flown one last time by Reserve Marine Medium Helicopter Squadron (HMM) 774 on Aug. 1. The CH-46 Sea Knight is a med...
 
 

Insitu awarded LRIP Lot IV RQ-21A Blackjack Systems contract

Under the terms of its latest contract, Insitu will build six RQ-21A Blackjack systems for the U.S. Navy and Marine Corps. The $78-million Small Tactical Unmanned Aircraft Systems Lot IV Low Rate Initial Production contract is the latest event in the program’s progression toward the Initial Operational Test and Evaluation phase.   “This award will...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>