We issued an updated research report on defense major L3 Technologies, Inc. on Mar 30. With the developed commercial aviation markets of North America and Europe continuing to expand their fleet, the company has been witnessing strong growth in this space.
Apart from its strong domestic market position, L3 Technologies’ growth is boosted by a slew of Foreign Military Sales (FMS) contracts. In fact, the company is expanding steadily in countries like Saudi Arabia as well as catering to the needs of customers in Asia, particularly in China.
Moreover, the company regularly upgrades its technology and undertakes acquisitions to enhance its capabilities. In Jan 2017, it completed the buyout of Implant Sciences’ explosives trace detection (ETD) assets to increase its capabilities in the global aviation security and national security markets. Implant Sciences’ strong domain expertise and state-of-the-art trace detection technologies will support L3 Technologies’ sensor portfolio.
The company’s cash balance position is also strong. L3 Technologies generated $363 million in cash and cash equivalents compared with $207 million as of Dec 31, 2015. Its earnings exceeded the Zacks Consensus Estimate in the four trailing quarters, with an average positive surprise of 14.99%. The long-term earnings growth rate of the company is pegged at 5.80%
However, the strong dollar may continue to limit the company’s overseas business growth. In fact, the company’s international sales declined about 10% in 2016 from the 2015 level.
L3 Technologies’ stock gained 40.7% in the last one year, outperforming the Zacks categorized Electronics-Military Systems industry’s gain of 31.1%. The share price appreciation was mainly backed by major contract wins from the Pentagon. The company also offers tough competition to peers like Arotech Corporation. , FLIR Systems, Inc. and Raytheon Company .
Zacks Rank
L3 Technologies currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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L3 Technologies' Acquisitions, Solid Cash Balance Impress
We issued an updated research report on defense major L3 Technologies, Inc. on Mar 30. With the developed commercial aviation markets of North America and Europe continuing to expand their fleet, the company has been witnessing strong growth in this space.
Apart from its strong domestic market position, L3 Technologies’ growth is boosted by a slew of Foreign Military Sales (FMS) contracts. In fact, the company is expanding steadily in countries like Saudi Arabia as well as catering to the needs of customers in Asia, particularly in China.
Moreover, the company regularly upgrades its technology and undertakes acquisitions to enhance its capabilities. In Jan 2017, it completed the buyout of Implant Sciences’ explosives trace detection (ETD) assets to increase its capabilities in the global aviation security and national security markets. Implant Sciences’ strong domain expertise and state-of-the-art trace detection technologies will support L3 Technologies’ sensor portfolio.
The company’s cash balance position is also strong. L3 Technologies generated $363 million in cash and cash equivalents compared with $207 million as of Dec 31, 2015. Its earnings exceeded the Zacks Consensus Estimate in the four trailing quarters, with an average positive surprise of 14.99%. The long-term earnings growth rate of the company is pegged at 5.80%
However, the strong dollar may continue to limit the company’s overseas business growth. In fact, the company’s international sales declined about 10% in 2016 from the 2015 level.
L3 Technologies’ stock gained 40.7% in the last one year, outperforming the Zacks categorized Electronics-Military Systems industry’s gain of 31.1%. The share price appreciation was mainly backed by major contract wins from the Pentagon. The company also offers tough competition to peers like Arotech Corporation. , FLIR Systems, Inc. and Raytheon Company .
Zacks Rank
L3 Technologies currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access.Click here for Zacks' private trades >>