Before the bell Thursday, the aerospace and defense contractor reported fourth-quarter net earnings of $2.23 a share, beating per-share earnings of $1.97 analysts polled by Thomson Reuters had forecast. Revenue of $3.26 billion, though 8.3% lower year-on-year, exceeded consensus of $3.16 billion.
"We performed well in the fourth quarter amid very challenging conditions caused by declining U.S. national security budgets and sequestration. We generated solid operating margin and cash flow despite declining sales," said CEO Michael T. Strianese in a statement.
Over fiscal 2013, the New York-based company recorded net profits of $8.70 a share and $12.63 billion in revenue. Analysts had anticipated $8.35 a share in net income and $12.53 billion in revenue.TheStreet Ratings team rates L-3 COMMUNICATIONS HLDGS INC as a Buy with a ratings score of A-. The team has this to say about their recommendation: "We rate L-3 COMMUNICATIONS HLDGS INC (LLL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
- You can view the full analysis from the report here: LLL Ratings Report