L-3 Communications Holdings
The 10-second takeaway
For the quarter ended Sep. 28 (Q3), L-3 Communications Holdings beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped.
Margins contracted across the board.
L-3 Communications Holdings logged revenue of $3.28 billion. The 13 analysts polled by S&P Capital IQ foresaw sales of $3.25 billion on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $3.79 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 $1.94. The 15 earnings estimates compiled by S&P Capital IQ predicted $1.86 per share. GAAP EPS of $1.97 for Q3 were 12% lower than the prior-year quarter's $2.24 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%, 60 basis points worse than the prior-year quarter. Operating margin was 10.1%, 60 basis points worse than the prior-year quarter. Net margin was 5.8%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.49 billion. On the bottom line, the average EPS estimate is $2.18.
Next year's average estimate for revenue is $13.05 billion. The average EPS estimate is $7.84.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 896 members out of 932 rating the stock outperform, and 36 members rating it underperform. Among 224 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 216 give L-3 Communications Holdings a green thumbs-up, and eight 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 $75.00.
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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 here. He is 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. Try any of our Foolish newsletter services free for 30 days. We 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.