LLL - L-3 Communications Holdings, Inc - company has beaten the Street’s estimate in 15 out of the past 16 quarters

L-3 Communications Holdings, Inc. (LLL) exceeded analysts’ earnings expectations in 15 out of the past 16 quarters. Citing anticipated defense spending in the U.S., LLL upped its earnings per share outlook for 2007. On Feb 6, the Board of Directors boosted its regular quarterly cash dividend by 33.3% to 25 cents per share. LLL is currently yielding 1.1% and its return on equity easily surpasses that of the industry average—12% compared to 2%. Full Analysis L-3 Communications Holdings, Inc. is a leading provider of Intelligence, Surveillance and Reconnaissance (ISR) systems, secure communications systems, aircraft modernization, training and government services. The company is a leading merchant supplier of a broad array of high technology products, including guidance and navigation, sensors, scanners, fuzes, data links, propulsion systems, simulators, avionics, electro optics, satellite communications, electrical power equipment, encryption, signal intelligence, antennas and microwave components. LLL’s history of exceeding analysts’ earnings expectations should definitely catch the eyes of investors. The company has beaten the Street’s estimate in 15 out of the past 16 quarters. On Jan 31, LLL reported fourth-quarter fiscal 2006 profits of $173.6 million, or $1.37 per share. Analysts were calling for $1.36 per share. Compared to the prior-year period, which resulted in profits of $151.4 million, or $1.24 per share, earnings climbed 10.5%. Revenues experienced a 17.2% jump to $3.4 billion from $2.9 billion in the fourth quarter of 2005. For the entire year, profits came in at $526.1 million, or $4.22 per share, up from $508.5 million, or $4.20 per share, in 2005. Revenues soared 32.2% to $12.48 billion, compared to $9.44 billion in 2005. Funded backlog at Dec 31, 2006 increased 24.9% over year-end 2005. Citing anticipated defense spending in the U.S., LLL upped its earnings per share outlook for 2007 to between $5.55 and $5.65. The company’s previous guidance called for profits between $5.45 and $5.55 per share. President and CEO Michael Strianese stated, "Our businesses are performing very well and we entered the new year with a record funded backlog. In addition, the current U.S. defense budget presents many opportunities for L-3's products and services." Analysts’ optimism about LLL’s future earnings potential continues to grow as well. Over the past 30 days, five analysts raised their estimates for this year, pushing the consensus to $5.67. Two analysts upped their profit forecasts for next year, with the consensus currently sitting at $6.29. Earnings per share are projected to grow 12.8% over the next 3-5 years. On Feb 6, the Board of Directors boosted its regular quarterly cash dividend by 33.3% to 25 cents per share from 18.75 cents. The company is currently yielding 1.1% and has a five-year average dividend yield of 0.46%. LLL’s return on equity dwarfs that of the industry average—12% compared to 2%. LLL is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 21.6% since 1988. Because the Zacks Rank has a market cap bias, Growth & Income investors may find a greater number of large-cap stocks by considering both Zacks #1 Rank (Strong Buy) and Zacks #2 Rank (Buy) stocks in their selection criteria. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home