Jefferies Cuts Price Targets on L-3 Communications (LLL) Following Weak Q3 Results
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Price: $0.84 --0%
Rating Summary:
12 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 9
Rating Summary:
12 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 9
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Jefferies is maintaining its Hold rating on shares of L-3 Communications (NYSE: LLL) following the release of its third quarter results and is lowering its price target from $82 to $75.
The company released its quarterly results with earnings topping expectations and sales falling short of. The firm notes the earnings upside was largely due to the company repurchasing $371 million in shares over the quarter. Management highlighted an additional $100 million in buyback may occur before years end. The company has returned 110 percent of free cash flow to its shareholders year to date.
An analyst at Jefferies comments, "The impact from the lowered sales, however, is more than offset by lower interest expense and a reduced share count. LLL did not issue 2012 guidance due to the uncertain operating environment. We see a contracting business in 2012 that can still generate mid-single digit EPS growth from share repurchases."
The firm is raising its Q4 and FY11 EPS estimates from $2.44 and $8.70 to $2.51 and $8.85 due to a lower share count, but is reducing its FY11 revenue estimate from $15.5 billion to $15.4 billion due to the Joint Cargo Aircraft being pushed to 2012.
Jefferies is maintaining its FY12 EPS estimate of $9.40 and is lowering its FY13 estimate from $10.15 to $9.75.
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 $69.06 yesterday.
The company released its quarterly results with earnings topping expectations and sales falling short of. The firm notes the earnings upside was largely due to the company repurchasing $371 million in shares over the quarter. Management highlighted an additional $100 million in buyback may occur before years end. The company has returned 110 percent of free cash flow to its shareholders year to date.
An analyst at Jefferies comments, "The impact from the lowered sales, however, is more than offset by lower interest expense and a reduced share count. LLL did not issue 2012 guidance due to the uncertain operating environment. We see a contracting business in 2012 that can still generate mid-single digit EPS growth from share repurchases."
The firm is raising its Q4 and FY11 EPS estimates from $2.44 and $8.70 to $2.51 and $8.85 due to a lower share count, but is reducing its FY11 revenue estimate from $15.5 billion to $15.4 billion due to the Joint Cargo Aircraft being pushed to 2012.
Jefferies is maintaining its FY12 EPS estimate of $9.40 and is lowering its FY13 estimate from $10.15 to $9.75.
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 $69.06 yesterday.
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