L-3 Communications Holdings Inc.
) through its Global Security Solutions (GSS) division received a
contract of around $50.9 million from the U.S. Department of
Defense (DoD) on Apr 14, 2014. L-3 Communications, one of the
leading defense players, have lately been winning a number of DoD
contracts on the back of its technological advancements.
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Per the latest contract, L-3 GSS will supply Automated
Installation Entry hardware and software for up to 35 military
installations. However, the company and the DoD did not provide
any information related to the work location. The program is
scheduled to complete by Apr 13, 2018.
During the first quarter of 2014, the company received several
contracts from the DoD. Its Coleman Aerospace business received a
contract, with an initial value of $73 million, to provide
Medium-Range Ballistic Missile target vehicles for the DoD's
Missile Defense Agency. This also has an option of more than $400
million over the next five years.
Apart from the strong domestic market, the company continues to
focus on its overseas business. During the fourth quarter 2013,
the company extended its international and commercial businesses.
Its international and commercial sales increased 8% year over
year in the fourth quarter 2013, and represented about 30% of its
consolidated net sales (up from 25% last year).
The company ended 2013 with earnings of $8.54 per share
surpassing the guidance of $8.25 to $8.35 per share. The strong
performance was driven by its program execution capability, cost
cutting programs, added to strong international and commercial
orders. The Zacks Consensus Estimate for 2014 is $8.40, above the
company's guidance range of $8.15 to $8.35 per share.
Currently, L-3 Communications holds a Zacks Rank #2 (Buy). Other
defense players to look out for include
Huntington Ingalls Industries, Inc.
General Dynamics Corp.
Northrop Grumman Corporation
). While Huntington Ingalls holds a Zacks Rank #1 (Strong Buy),
General Dynamics and Northrop Grumman carry a Zacks Rank #2