LLL - L-3 Communications - Five out of 10 analysts lifted full-year 2008 expectations

L-3 Communications Holdings, Inc. (LLL) is trading very close to its 52-week high after announcing first-quarter results last week. Earnings of $1.54 cents per share topped the consensus estimate by 2% and surpassed the year-prior $1.29. Net sales increased 6% to $3.5 billion on a year-over-year basis. L-3 is currently yielding 1.1%, a much more rewarding dividend yield than the industry average.

Full Analysis

L-3 Communications is a prime contractor in aircraft modernization and maintenance, C3ISR (Command, Control, Communications, Intelligence, Surveillance and Reconnaissance) systems and government services. L-3 is also a leading provider of high technology products, subsystems and systems. The company reported 2007 sales of $14 billion.

Growth

The company is trading very close to its 52-week high after announcing first-quarter results last week. Earnings of $1.54 cents per share topped the consensus estimate by 2% and surpassed the year-prior $1.29. Net sales increased 6% to $3.5 billion on a year-over-year basis.

"Our businesses performed well across all segments in the 2008 first quarter," said Michael T. Strianese, president and chief executive officer of L-3. �We continued to generate strong gains in sales, operating income and EPS. We had record quarterly funded orders of $4.1 billion and ended the quarter with record funded backlog of $10.1 billion.

Income

L-3 Communications added that during the first quarter, it continued to focus on shareholder value by repurchasing $283 million of common stock and paying cash dividends of $37 million. The company upped its dividend by 20% to 30 cents per share. L-3 is currently yielding 1.1%, a much more rewarding dividend yield than the industry average.

Estimates

Wall Street forecasts shot up on the company's strong report. Five out of 10 analysts lifted full-year 2008 expectations to $6.68 per share from last week's $6.59. The most accurate projection is even higher at $6.70.

Content Courtesy: Zacks Investment Research

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