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L-3 Communications Q2 Net Beats View, but Guidance Lowered (LLL)

Defense contractor L-3 Communications Holdings, Inc. ( LLL

) on Tuesday posted better-than-expected adjusted second quarter earnings, but the company cut its full-year forecast.

The New York-based company reported second quarter net income of $227 million, or $1.95 per share, compared with $223 million, or $1.90 per share, in the year-ago period. Excluding one-time items, adjusted profit was $2.04 per share.

Sales rose about 1% from last year, to almost $4 billion.

On average, Wall Street analysts expected a smaller profit of $1.93 per share, on slightly higher revenue of $4.03 billion.

Looking ahead, the company cut its full-year outlook to a range of $8.05 to $8.25 per share, down from a prior forecast of $8.13 to $8.33 per share. It also lowered its full-year sales forecast to $16 billion to $16.1 billion, from $16.2 billion to $16.3 billion previously.

L-3 shares fell 65 cents, or -0.9%, in premarket trading Tuesday.

The Bottom Line

We have avoided shares of LLL since our early June 2008 coverage began, when the stock was trading at $98. The company has a 2.09% dividend yield, based on last night's closing stock price of $74.88. The stock has technical support in the $70-$71 price area. If the shares can firm up, we see overhead resistance around the $82-$83 price levels. We would remain on the sidelines for now.

L-3 Communications Holdings, Inc. ( LLL ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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