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Source: L-3 Communications.

Communications equipment maker and defense contractor L-3 Communications (NYSE:LLL) just reported results for the first quarter of 2014.

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.

Anders Bylund has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 daysWe Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.