We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Defense contractor L3 Technologies, Inc. posted fourth-quarter 2016 adjusted earnings of $2.38 per share, beating the Zacks Consensus Estimate of $2.12 by 12.3%. Earnings also improved 10.2% from the year-ago figure of $2.16.
For full-year 2016, the company reported adjusted earnings of $8.21 per share, beating the Zacks Consensus Estimate of $7.95 by 3.3%.
Total Revenue
Total revenue of $2.99 billion in the quarter surpassed the Zacks Consensus Estimate of $2.77 billion by 7.9%. Revenues were also up 4.1% year over year.
Organic sales to the U.S. government increased 5%, while that to international and commercial customers were down 0.8%. Overall, organic sales increased 3% in the fourth quarter.
Total revenue of $10.51 billion in the quarter surpassed the Zacks Consensus Estimate of $10.30 billion by 2%.
Orders & Margin
Funded orders in the reported quarter were $3.58 billion, reflecting a 39.7% year-over-year increase. For full-year 2016, the company’s funded orders came in at $11 billion, reflecting an 11.5% increase from the year-ago figure. Funded backlog was $8.9 billion as of Dec 31, 2016, up 5.6% from $8.4 billion as of Dec 31, 2015.
Operating margin expanded 80 basis points (bps) to 12.3% in 2016.
L-3 Communications Holdings, Inc. Price, Consensus and EPS Surprise
Aerospace Systems: Net sales at the segment increased 0.6% to $1,075 million from the prior-year figure of $1,069 million mainly on account of higher sales of Vertex Aerospace and ISR Systems.
Operating income was $57 million, compared to the year-ago number of $61 million, while operating margin contracted 40 bps to 5.3%.
Communication Systems: The segment recorded net sales of $582 million in the reported quarter, down 0.5%. The decrease mainly reflects reduced demand for power devices for commercial satellites.
Operating income improved 1.8% to $58 million, while operating margin expanded 30 bps to 10%.
Electronic Systems: Net sales at the segment improved 9.4% to $1,332 million, primarily due to significant organic sales growth.
Operating income improved 30.7% to $179 million, while operating margin expanded 210 bps to 13.4%.
Financial Position
As of Dec 31, 2016, L3 Technologies had $363 million in cash and cash equivalents, compared with $207 million as of Dec 31, 2015.
Long-term debt as of Dec 31, 2016 was $3,320 million, compared with $3,125 million as of Dec 31, 2015.
Net cash from operating activities was $1, 097 million at the end of 2016, up 2.6% from the year-ago figure. Capital expenditure totaled $216 million, compared with $197 million in the prior year.
2017 Guidance
L3 Technologies has raised its 2017 outlook. The company now expects earnings in the range of $8.40−$8.60 per share (versus the prior range of $8.15−$8.35) with revenues of $10,625 −$10,825 million (versus the prior range of $10,475−$10,675 billion) for 2017.
Moreover, the company expects to generate cash from operations of $1,085 million, up from the prior guidance of $1, 075 million. However, the outlook for resultant free cash flow remains at $865 million, on account of higher capital expenditure.
Peer Earnings Review
Rockwell Collins Inc. reported financial results for first-quarter fiscal 2017 ended Dec 31, 2016. The company’s adjusted earnings per share of $1.20 surpassed the Zacks Consensus Estimate of $1.15 by 4.3%.
Lockheed Martin Corp. (LMT - Free Report) reported fourth-quarter 2016 earnings from continuing operations of $3.25 per share, surpassing the Zacks Consensus Estimate of $3.04 by 6.9%. Earnings also increased 23.6% from the year-ago level, courtesy of strong revenue and operating margin growth.
Textron Inc. (TXT - Free Report) reported fourth-quarter 2016 adjusted earnings from continuing operations of 80 cents per share, missing the Zacks Consensus Estimate of 87 cents by 8%.
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 >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
L3 Technologies (LLL) Tops Q4 Earnings, Lifts 2017 View
Defense contractor L3 Technologies, Inc. posted fourth-quarter 2016 adjusted earnings of $2.38 per share, beating the Zacks Consensus Estimate of $2.12 by 12.3%. Earnings also improved 10.2% from the year-ago figure of $2.16.
For full-year 2016, the company reported adjusted earnings of $8.21 per share, beating the Zacks Consensus Estimate of $7.95 by 3.3%.
Total Revenue
Total revenue of $2.99 billion in the quarter surpassed the Zacks Consensus Estimate of $2.77 billion by 7.9%. Revenues were also up 4.1% year over year.
Organic sales to the U.S. government increased 5%, while that to international and commercial customers were down 0.8%. Overall, organic sales increased 3% in the fourth quarter.
Total revenue of $10.51 billion in the quarter surpassed the Zacks Consensus Estimate of $10.30 billion by 2%.
Orders & Margin
Funded orders in the reported quarter were $3.58 billion, reflecting a 39.7% year-over-year increase. For full-year 2016, the company’s funded orders came in at $11 billion, reflecting an 11.5% increase from the year-ago figure. Funded backlog was $8.9 billion as of Dec 31, 2016, up 5.6% from $8.4 billion as of Dec 31, 2015.
Operating margin expanded 80 basis points (bps) to 12.3% in 2016.
L-3 Communications Holdings, Inc. Price, Consensus and EPS Surprise
L-3 Communications Holdings, Inc. Price, Consensus and EPS Surprise | L-3 Communications Holdings, Inc. Quote
Segmental Performance
Aerospace Systems: Net sales at the segment increased 0.6% to $1,075 million from the prior-year figure of $1,069 million mainly on account of higher sales of Vertex Aerospace and ISR Systems.
Operating income was $57 million, compared to the year-ago number of $61 million, while operating margin contracted 40 bps to 5.3%.
Communication Systems: The segment recorded net sales of $582 million in the reported quarter, down 0.5%. The decrease mainly reflects reduced demand for power devices for commercial satellites.
Operating income improved 1.8% to $58 million, while operating margin expanded 30 bps to 10%.
Electronic Systems: Net sales at the segment improved 9.4% to $1,332 million, primarily due to significant organic sales growth.
Operating income improved 30.7% to $179 million, while operating margin expanded 210 bps to 13.4%.
Financial Position
As of Dec 31, 2016, L3 Technologies had $363 million in cash and cash equivalents, compared with $207 million as of Dec 31, 2015.
Long-term debt as of Dec 31, 2016 was $3,320 million, compared with $3,125 million as of Dec 31, 2015.
Net cash from operating activities was $1, 097 million at the end of 2016, up 2.6% from the year-ago figure. Capital expenditure totaled $216 million, compared with $197 million in the prior year.
2017 Guidance
L3 Technologies has raised its 2017 outlook. The company now expects earnings in the range of $8.40−$8.60 per share (versus the prior range of $8.15−$8.35) with revenues of $10,625 −$10,825 million (versus the prior range of $10,475−$10,675 billion) for 2017.
Moreover, the company expects to generate cash from operations of $1,085 million, up from the prior guidance of $1, 075 million. However, the outlook for resultant free cash flow remains at $865 million, on account of higher capital expenditure.
Peer Earnings Review
Rockwell Collins Inc. reported financial results for first-quarter fiscal 2017 ended Dec 31, 2016. The company’s adjusted earnings per share of $1.20 surpassed the Zacks Consensus Estimate of $1.15 by 4.3%.
Lockheed Martin Corp. (LMT - Free Report) reported fourth-quarter 2016 earnings from continuing operations of $3.25 per share, surpassing the Zacks Consensus Estimate of $3.04 by 6.9%. Earnings also increased 23.6% from the year-ago level, courtesy of strong revenue and operating margin growth.
Textron Inc. (TXT - Free Report) reported fourth-quarter 2016 adjusted earnings from continuing operations of 80 cents per share, missing the Zacks Consensus Estimate of 87 cents by 8%.
Zacks Rank
L3 Technologies currently has a Zacks Rank #3 (Hold). 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 >>