L-3 Communications Profit Up 14%, Topping Estimates
Defense contractor L-3 Communications Holdings on Monday said first-quarter profit rose 17%, on robust demand for intelligence services and communications products from the U.S. military.
Net income increased to $162.1 million, or $1.29 a share, from $138.9 million, or $1.13 a share, in the year-earlier quarter.
Sales grew 14% to $3.3 billion from $2.9 billion a year ago.
Analysts polled by Thomson Financial forecast earnings of $1.27 a share on $3.2 billion in sales.
By segment, sales in L-3's command, control and intelligence segment jumped 19%, reflecting demand for secure network communications products from the Defense Department. Revenue from government services rose 14% on new business for linguist, intelligence, training and other services to support the U.S. military in Iraq, Afghanistan and elsewhere.
Aircraft modernization and maintenance sales grew 13%, while sales of specialized products were up 11 percent in the quarter.
Stripping out results from acquisitions, overall sales climbed 9%.