L-3 Communications Holdings, Inc. (LLL) is seeing higher Zacks Consensus Estimates ahead of reporting next month. The 2009 year forecast of $7.38 per share is up 7 cents over the past 3 month. For the following year, analysts polled by Zacks are calling for earnings of $8.16, representing 11% growth year-over-year.
Company Description
L-3 Communications supplies a broad range of products and services used in aerospace and defense platforms.
The company provides various systems, subsystems and products on many, including those for secure networked communications and communication products, mobile satellite communications, information security systems, shipboard communications, naval power systems, missiles and munitions, telemetry and instrumentation and airport security systems.
L-3 is also a prime system contractor for aircraft modernization and operations & maintenance (O&M), Command, Control & Communications (C3), Intelligence, Surveillance and Reconnaissance (ISR) collection systems and services, training and simulation, intelligence services and government support services.
Customers include the U.S. Department of Defense (DoD) and its prime contractors, the U.S. Department of Homeland Security (DHS), U.S. Government intelligence agencies, major aerospace and defense contractors, allied foreign government ministries of defense, commercial customers and certain other U.S. federal, state and local government agencies.
A Recent Contract
The company recently announced that it received a follow-on contract from the U.S. Army’s Program Executive Office for Simulation, Training and Instrumentation. L-3 explained that the contract has an estimated value of $48.7 million over the initial base year and four option years. L-3 already received the program’s first delivery order, valued at $15.5 million.
Bullish Forecasts
L-3 is seeing higher Zacks Consensus Estimates ahead of reporting next month. The 2009 year forecast of $7.38 per share is up 7 cents over the past 3 month. For the following year, analysts polled by Zacks are calling for earnings of $8.16, representing 11% growth year-over-year.
Results for the third quarter are scheduled for release on October 27.
Strong Quarter
The company reported second-quarter earnings of $1.90 per share, beating the Zacks Consensus Estimate by 7% and surpassing the year-prior total. Net sales jumped 6% to $3.9 billion on a year-over-year basis.
Management expects to continue growing in the second half of 2009, maintaining strong program performance and delivering value for customers.
Leading the Industry
L-3 offers a return on equity (ROE) of 15%, topping the industry average of 12%. The company’s net profit margin of 6% is in line with the industry average. L-3 also pays an industry-leading dividend yield of 2%. Zacks Investment Research
