L-3 Communications Q2 Profit Down; Lowers Annual Targets

(RTTNews) - L-3 Communications Holdings, Inc. (LLL), Thursday reported lower earnings for the second quarter, that reflected increased cost of sales. However, it registered higher sales for the period. The company cut its full-year guidance, expecting lower sales, operating margin and earnings for the DoD sequestration cuts.

The company reported second-quarter net income of $185 million or $2.03 per share, down from $205 million or $2.08 per share during the same quarter last year.

On average, fourteen analysts polled by Thomson Reuters had expected earnings per share of $1.93 for the quarter. Analysts' estimates typically exclude one-time items.

For the three-month period, the company reported net sales of $3.2 billion, a 2 percent increase from $3.14 billion during the corresponding quarter last year. Analysts estimated the firm to generate revenues of $3.05 billion. The company said that the sales growth was primarily from the Platform & Logistics Solutions and Command, Control, Communications, Intelligence, Surveillance and Reconnaissance segments.

L-3 Communications lowered its financial expectations for the full year, and it now expects revenues to be in the range of $12.5 billion - $ 12.6 billion, down from $12.55 billion - $12.75 billion previously anticipated. Earnings per share is expected to be in the range $ 8.05 - $8.15 per share, down from previous expectations of $8.05 to $8.15 per share.