Headquartered in New York City, L-3 Communications ( LLL ) supplies of a broad range of products and services used in a number of aerospace and defense platforms. The company supplies subsystems on many platforms that are used for secure communication networks; mobile satellite communications; information security systems; shipboard communications; naval power systems; fuses and safety & arming devices for missiles and munitions; microwave assemblies for radars and missiles; telemetry and instrumentation; and airport security systems.
In addition, the company is a prime system contractor for aircraft modernization and maintenance; Intelligence, Surveillance & Reconnaissance (ISR) collection platforms; simulation and training; and government systems support services.
L-3 functions through four primary business segments. Specialized Products (34% of 2007 revenues) segment caters to military and commercial customers in several niche markets. Products include security and surveillance systems for aviation, port and border applications, including those for detection of explosives, concealed weapons, contraband and illegal narcotics.
The Government Services (GS) segment (31%) offers a wide range of services. These include training modules for aircrews and navigators, communication software support, and crisis management software.
The Aircraft Modernization and Maintenance (AM&M) segment (18%) provides products and services such as airborne traffic and collision avoidance systems (TCAS), cockpit voice and flight data recorders, and rugged displays for military and commercial applications.
The Command, Control, Communications and Intelligence, Surveillance, and Reconnaissance (C3ISR) segment (17%) specializes in signals intelligence and communications intelligence systems.
The company operates in the U.S., Canada, and Germany. The U.S. Department of Defense (DoD) is LLL s largest customer, accounting for 74% of revenues in 2007.
L-3 Communications registered strong operational and financial results in all four quarters of 2007. The company delivered growth across multiple business segments. Along with stable operating performance, a healthy backlog position and a favorable industry outlook prompted management to raise 2007 sales, earnings and free cash flow guidance. This growth trend is expected to continue through 2008-09 due to an impressive product portfolio.
The company recently stated that it will provide AN/PSS-14 mine detection systems and accessories to the U.S. Army. This order totals $26 million and represents the fourth full-rate production contract for this product. Since this contract was awarded in 2006, the total value of orders received exceeds $90 million, with an overall anticipated value in excess of $300 million over 10 years.
It also recently announced that it was awarded a one-year, $36 million contract to provide aircraft and manufacturing services to the U.S. Army under a logistics support program at the Corpus Christi Army Depot.
LLL offers a quarterly dividend that was increased by 20% in early February. The new dividend of 30 cents per share translates into a dividend yield of 1%, which is better than the industry average.
The company posted fourth-quarter earnings of $1.63 per share in late January, outpacing the previous year’s $1.37 and exceeding the consensus estimate by three cents. Consolidated net sales grew by 12.4% from the year-ago quarter.
L-3 boasts an outstanding record of exceeding analyst earnings expectations with only one miss, dating back June 2003. Analysts are also upbeat on the company’s future prospects and have been increasing full-year 2008 earnings projections. Three out of 12 covering analysts upped the 2008 estimates to $6.59 per share from last month’s $6.57. The most accurate forecast is a more bullish $6.73.
Currently trading near a 52-week high, L-3 Communications is scheduled to release its first-quarter results on Thursday, April 24, 2008.
by Zacks
about me at marketocracy ...
my funds ...
invest all way through blog
socialPicks
digg
armin's shared items
$111.63 (04/09/08)
