Aerospace Results Boost L-3 to Higher Profit, Guidance
July 28 2016 - 8:10AM
Dow Jones News
By Joshua Jamerson
Defense contractor L-3 Communications Holdings Inc. posted
stronger-than-expected results for the latest quarter, helped by
higher sales in its aerospace systems business, and raised its
outlook for the year.
The results and boosted guidance for L-3 are the latest in the
defense segment. Last week, Lockheed Martin similarly topped
expectations and lifted its view, and Northrop Grumman Corp. did
the same this week .
In the June quarter, the company said sales in its aerospace
systems segment, which makes up a large chunk of sales, increased
15% to $1.15 billion. The sales increase reflects in part contract
performance adjustments on international head-of-state aircraft
modification contracts in the 2015 second quarter that didn't recur
in the latest period, as well as the procurement and delivery of
two business jets to a foreign military customer.
Over all, the company reported earnings of $147 million, or
$1.88 a share, up from $120 million, or $1.44 a share, in the
year-ago period.
Sales rose 5% to $2.66 billion. Analysts, on average, projected
$1.69 a share in profit on $2.49 billion in sales.
Operating margin climbed to 9.3% from 6% in the year-ago
quarter.
For the year, the company expects earnings of $7.65 to $7.85 a
share on sales of $10.15 billion to $10.25 billion. It previously
guided for a per-share profit of $7.55 to $7.75 and sales of $9.95
billion to $10.15 billion. Analysts were already expecting results
above L-3's prior earnings forecast. The consensus estimate was
$7.81 a share on $10.12 billion in revenue.
L-3 stock, which has risen 23% so far this year, was unchanged
in premarket trading from $147.44 at Wednesday's close.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
July 28, 2016 08:55 ET (12:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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