| 6:39AM L-3 Comms beats by $0.04, misses on revs; raises FY11 EPS above consensus, reaffirms FY11 revs guidance ( LLL) 79.12 : Reports Q2 (Jun) earnings of $2.15 per share, ex-an $0.11 tax benefit, $0.04 better than the Capital IQ Consensus Estimate of $2.11; revenues fell 5.0% year/year to $3.77 bln vs the $3.84 bln consensus. Co issues guidance for FY11, raises EPS to $8.65-8.75 from $8.50-8.60 vs. $8.55 Capital IQ Consensus Estimate; reaffirms FY11 revs of $15.5-15.6 bln vs. $15.52 bln Capital IQ Consensus Estimate. The co increased its full year EPS guidance as a result of the lower expected tax rate for 2011. Net sales of $3.8 billion decreased by approximately 5% compared to the 2010 second quarter. The decline in sales was driven primarily by the loss of the Special Operations Forces Support Activity (SOFSA) and Afghanistan Ministry of Defense (MoD) support contracts in 2010, continued lower pass-through volume related to the U.S. Army's systems and software engineering and sustainment services (SSES) contract due to a change in contract vehicles that occurred in 2009, and a delay in the 2011 order for the Joint Cargo Aircraft (JCA). Funded orders for the 2011 second quarter decreased to $3.8 bln compared to $4.1 bln for the 2010 second quarter. Funded backlog was $10.9 billion at July 1, 2011, compared to $11.1 billion at December 31, 2010. |
