Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

A business arm of L-3 Communications (LLL - Analyst Report), Platform Integration Division, announced that it has signed a memorandum of agreement with ViaSat Inc. (VSAT - Snapshot Report) to offer advanced in-flight connectivity capabilities to private transport aircrafts.

Per the agreement, both the companies will jointly work on a broadband satellite communication system for high-end aircrafts used by Heads of State and high-profile clients.

The new communication features include an airborne shipset and worldwide broadband network services that will be provided by ViaSat. L-3 Communications will deliver system integration, installation, engineering, design, in-cabin passenger networking and certification facilities.

This is the second communications-related deal signed by L-3 Communications following the recent $39.0 million dual satellite telecommunication terminal contract with the Australian Defense Force. This reflects the company’s aggressive pursuit of options to develop this business segment.

With its varied businesses, L-3 Communications has managed to maintain a stable earnings flow. Going forward, better prospects from overseas customers are expected to lead to earnings accretion. In the first quarter 2013, L-3 Communications’ international business registered 18% growth.

The combined efforts towards the development of the new technology will be a profitable addition to L-3 Communications’ logistics business. The company’s overall bookings at the end of 2012 stood at $10.9 billion. In the first quarter 2013, its backlog of orders remained solid at $10.5 billion which will lend significant upside to returns.

However, austerity in defense budget will continue to act as a deterrent to L-3 Communications’ broad growth objectives. The company presently carries a Zacks Rank #3 (Hold).

Other stocks in the defense domain currently performing well are Wesco Aircraft Holdings, Inc. (WAIR - Snapshot Report) and MTU Aero Engines Holding AG . Both holds a Zacks Rank #2 (Buy).

Headquartered in New York, NY, L-3 Communications offers command, control, communications, intelligence, surveillance, and reconnaissance (C3ISR) systems; aircraft modernization and maintenance; and national security solutions in the United States and internationally. Currently, it has a market capitalization of $7.58 billion.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%