GAAP earnings fell 5% year over year to $2.01 per share, while sales declined 7% to $3.0 billion. The bottom-line result was 2% above analysts' consensus estimates.
L-3 restructured into four reportable segments for this report: aerospace, electronic systems, communications systems, and national security solutions. All four divisions saw lower sales year over year, with the smallest decline falling in the electronics department.
Looking ahead, L-3 increased its full-year revenue and earnings guidance by less than 1% each.
CEO Michael Strianese explained that L-3 is working against headwinds from sequestration budget cuts and a reduced military effort in Afghanistan.
"We remain focused on improving efficiencies across our businesses, increasing market share and pursuing opportunities in adjacent markets," Strianese said in a prepared statement.
L-3 shares fell 0.6% on the news. Including this adjustment, the stock has gained 8.8% since presenting fourth-quarter results, nearly doubling the growth of the broader market.
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