L-3 Communications Holdings
The 10-second takeaway
For the quarter ended March 29 (Q1), L-3 Communications Holdings beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share was unchanged. GAAP earnings per share grew.
Gross margins shrank, operating margins shrank, net margins grew.
L-3 Communications Holdings chalked up revenue of $3.19 billion. The 14 analysts polled by S&P Capital IQ hoped for revenue of $3.00 billion on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $3.59 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 $2.00. The 15 earnings estimates compiled by S&P Capital IQ forecast $1.93 per share. Non-GAAP EPS of $2.00 for Q1 were 0.5% lower than the prior-year quarter's $2.01 per share. GAAP EPS of $2.11 for Q1 were 5.0% higher than the prior-year quarter's $2.01 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 9.8%, 50 basis points worse than the prior-year quarter. Operating margin was 9.8%, 50 basis points worse than the prior-year quarter. Net margin was 6.1%, 50 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.03 billion. On the bottom line, the average EPS estimate is $1.92.
Next year's average estimate for revenue is $12.51 billion. The average EPS estimate is $8.17.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 876 members out of 915 rating the stock outperform, and 39 members rating it underperform. Among 231 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 222 give L-3 Communications Holdings a green thumbs-up, and nine 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 $78.00.
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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.