Aerospace Results Boost L-3 to Higher Profit, Guidance

By Joshua Jamerson 

Defense contractor L-3 Communications Holdings Inc. posted stronger-than-expected results for the latest quarter, helped by higher sales in its aerospace systems business, and raised its outlook for the year.

The results and boosted guidance for L-3 are the latest in the defense segment. Last week, Lockheed Martin similarly topped expectations and lifted its view, and Northrop Grumman Corp. did the same this week .

In the June quarter, the company said sales in its aerospace systems segment, which makes up a large chunk of sales, increased 15% to $1.15 billion. The sales increase reflects in part contract performance adjustments on international head-of-state aircraft modification contracts in the 2015 second quarter that didn't recur in the latest period, as well as the procurement and delivery of two business jets to a foreign military customer.

Over all, the company reported earnings of $147 million, or $1.88 a share, up from $120 million, or $1.44 a share, in the year-ago period.

Sales rose 5% to $2.66 billion. Analysts, on average, projected $1.69 a share in profit on $2.49 billion in sales.

Operating margin climbed to 9.3% from 6% in the year-ago quarter.

For the year, the company expects earnings of $7.65 to $7.85 a share on sales of $10.15 billion to $10.25 billion. It previously guided for a per-share profit of $7.55 to $7.75 and sales of $9.95 billion to $10.15 billion. Analysts were already expecting results above L-3's prior earnings forecast. The consensus estimate was $7.81 a share on $10.12 billion in revenue.

L-3 stock, which has risen 23% so far this year, was unchanged in premarket trading from $147.44 at Wednesday's close.

Write to Joshua Jamerson at [e-mail]

(END) Dow Jones Newswires

July 28, 2016 08:55 ET (12:55 GMT)

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