FBR Capital Reiterates a 'Market Perform' on L-3 Communications (LLL); Q1 Results Mixed, Adjusting Outlook
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Price: $0.84 --0%
Rating Summary:
12 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
12 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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FBR Capital reiterates a 'Market Perform' on L-3 Communications (NYSE: LLL), PT $82.
FBR analyst says, "LLL reported mixed 1Q11 results and adjusted its guidance for 2011. Results in the quarter were driven largely by better YOY volumes out of C3ISR and government systems segments, offset by lower AM&M and electronic systems revenues. L-3’s operating performance on the margin line continued to be solid, particularly at AM&M, due to favorable price adjustments and improved contract performance. We still believe that L-3 is one of the better-positioned companies in the defense space to capitalize on budget trends toward the combatant commanders and should also benefit from wartime spending out of the supplemental budget, but due to program delays and uncertainty around the budget, revenues over the next few months seem to be at risk of being pushed to the right."
"Due to L-3’s change in guidance, particularly on revenues and margins, we are lowering our 2011 revenue estimate to $15.692B and raising our 2011 EPS estimate from $8.35 to $8.50. For 2012, we expect that sales growth will continue to be modest given the budget environment and estimate revenues of $15.958B. We think that margins will stay at similar levels as 2011 and estimate EPS of $8.83."
For more ratings news on L-3 Communications click here and for the rating history of L-3 Communications click here.
Shares of L-3 Communications closed at $76.95 yesterday.
FBR analyst says, "LLL reported mixed 1Q11 results and adjusted its guidance for 2011. Results in the quarter were driven largely by better YOY volumes out of C3ISR and government systems segments, offset by lower AM&M and electronic systems revenues. L-3’s operating performance on the margin line continued to be solid, particularly at AM&M, due to favorable price adjustments and improved contract performance. We still believe that L-3 is one of the better-positioned companies in the defense space to capitalize on budget trends toward the combatant commanders and should also benefit from wartime spending out of the supplemental budget, but due to program delays and uncertainty around the budget, revenues over the next few months seem to be at risk of being pushed to the right."
"Due to L-3’s change in guidance, particularly on revenues and margins, we are lowering our 2011 revenue estimate to $15.692B and raising our 2011 EPS estimate from $8.35 to $8.50. For 2012, we expect that sales growth will continue to be modest given the budget environment and estimate revenues of $15.958B. We think that margins will stay at similar levels as 2011 and estimate EPS of $8.83."
For more ratings news on L-3 Communications click here and for the rating history of L-3 Communications click here.
Shares of L-3 Communications closed at $76.95 yesterday.
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