L-3 Communications Holdings
The 10-second takeaway
For the quarter ended March 30 (Q1), L-3 Communications Holdings beat expectations on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue was unchanged and GAAP earnings per share expanded.
Margins dropped across the board.
L-3 Communications Holdings chalked up revenue of $3.59 billion. The 11 analysts polled by S&P Capital IQ expected to see a top line of $3.40 billion on the same basis. GAAP reported sales were 0.4% lower than the prior-year quarter's $3.60 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $2.01. The 14 earnings estimates compiled by S&P Capital IQ anticipated $1.85 per share. GAAP EPS of $2.01 for Q1 were 8.6% higher than the prior-year quarter's $1.85 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 10.1%, 70 basis points worse than the prior-year quarter. Operating margin was 10.1%, 70 basis points worse than the prior-year quarter. Net margin was 5.6%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.55 billion. On the bottom line, the average EPS estimate is $2.06.
Next year's average estimate for revenue is $14.30 billion. The average EPS estimate is $8.43.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 909 members out of 947 rating the stock outperform, and 38 members rating it underperform. Among 236 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 225 give L-3 Communications Holdings a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on L-3 Communications Holdings is hold, with an average price target of $73.75.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of L-3 Communications Holdings. Motley Fool newsletter services have recommended buying shares of L-3 Communications Holdings. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.