L3 Technologies (LLL) To Report Q2 Earnings: What To Expect?
Zacks Investment Research | Jul 24, 2017 10:43PM ET
L3 Technologies, Inc. (NYSE:LLL) is scheduled to release second-quarter 2017 results on Jul 27, before the opening bell.
Last quarter, L3 Technologies delivered a positive earnings surprise of 14.36%. It is worth noting that the company surpassed the Zacks Consensus Estimate in all the trailing four quarters, with an average beat of 10.46%.
Let’s see how things are shaping up at the company prior to this announcement.
Factors at Play
Among the highlights of the second quarter, L-3 Technologies clinched multiple contracts for providing commercial aviation training, resourcing and simulation solutions in 2017. The deals were awarded by global commercial operators and airline partners. With a total value of more than $115 million, these contracts included delivery of airline pilot training programs, airline pilot resourcing, mid-level and classroom devices, and the sale of eight full flight simulators (FFS) to date this year.
Moreover, on the international frontier, the company continues to expand its footprint in key markets, particularly the Middle East and Asia, by adding resources and personnel to address opportunities and better serve its customers. We expect its result in the to-be-reported quarter to duly reflect such initiatives.
Overall for the second quarter, L3 Technologies expects sales to be roughly $2.7 billion, reflecting flat organic growth. Earnings per share is projected to lie in between $1.90-$2.00. Again, free cash outflow is anticipated in the range of 50 million–150 million. Moreover, management expects the company to witness higher margins of about 9%.
On the flip side, L3 Technologies has been witnessing weak performance in some of its product lines. The noteworthy aspect of this is the downward trend in margins for service-related work due to competitive pressure, which might be reflected in second-quarters’ results.
While the Zacks Consensus Estimate for earnings reflects 8.11% year-over-year growth, the consensus for revenues is pegged at $2.70 billion, implying a 1.47% year-over-year improvement.
Earnings Whispers
Our proven model does not conclusively show that L3 Technologies will beat earnings this quarter. This is because a stock needs to have both a positive Zacks Investment Research
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