L-3 Communications Holdings Misses on Revenues but Beats on EPS
L-3 Communications Holdings (NYS: LLL) reported earnings on Jan. 31. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), L-3 Communications Holdings missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank, and GAAP earnings per share dropped.
Gross margins dropped, operating margins improved, net margins grew.
L-3 Communications Holdings booked revenue of $4.02 billion. The 14 analysts polled by S&P Capital IQ hoped for revenue of $4.18 billion. Sales were 5.6% lower than the prior-year quarter's $4.26 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $2.49. The 15 earnings estimates compiled by S&P Capital IQ averaged $2.41 per share on the same basis. GAAP EPS of $2.72 for Q4 were 15% higher than the prior-year quarter's $2.36 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 11.0%, 400 basis points worse than the prior-year quarter. Operating margin was 11.0%, 20 basis points better than the prior-year quarter. Net margin was 6.8%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.48 billion. On the bottom line, the average EPS estimate is $1.90.
Next year's average estimate for revenue is $14.51 billion. The average EPS estimate is $8.45.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 904 members out of 941 rating the stock outperform, and 38 members rating it underperform. Among 256 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 246 give L-3 Communications Holdings a green thumbs-up, and 10 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 $72.17.
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At the time this article was published 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 ofMotley 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 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.
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