L-3 Hits Estimates

The defense contractor faces a widening criminal probe, though.
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(LLL) - Get Report

posted a sharp rise in first-quarter earnings and reaffirmed full-year guidance.

The news comes as the New York defense contractor faces a broadening probe into an L-3 unit that supplied defective parts for military radios.

On Tuesday, the company posted first-quarter earnings of $102 million, or 88 cents a share, up from the year-ago $72 million, or 65 cents a share. Revenue rose to $1.96 billion from $1.52 billion a year earlier.

"I am pleased to report that L-3 began the year with a solid performance in the first quarter," said CEO Frank C. Lanza. "Among the top performers were training and simulation, aircraft modernization, operations and maintenance, and aviation products, as well as continued strong performance from secure communications and ISR systems and government services."

The company said it expects to post 2005 sales of $8.2 billion, led by organic, or nonacquisition-related, growth of 10%. The company guided to 2005 earnings a shade above $4 a share. The Thomson First Call analyst estimate called for earnings of $4.05 a share on revenue of $8 billion.

L-3 closed Monday at $70.25.