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2016-10-28 11:19:50 LLL JX Luxventure $138.64 / +0.89 (+0.65%) 11:19 10/28/16 10/28 11:19 10/28/16 11:19	Battlground: Analysts clash on L-3 outlook after mixed quarterly report The shares of defense contractor L-3 Communications (LLL) are climbing slightly after the company reported higher than expected third quarter profits and raised its fiscal year 2016 revenue and profit guidance yesterday morning. However, the company's Q3 revenue and fiscal 2017 profit guidance came in below expectations. Two research firms disagreed on the company's outlook after its results, with Cowen upgrading the stock and Drexel Hamilton downgrading the shares. RESULTS: L-3's earnings per share from continuing operations came in at $1.88, versus the consensus outlook of $1.82. It reported Q3 revenue of $2.5B, versus the consensus outlook of $2.55B. L-3 raised its fiscal 2016 EPS guidance to $7.85-$7.95 from $7.65-$7.85. Analysts' consensus outlook was $7.88. It increased its full-year revenue guidance $10.25B-$10.35B from $10.15B-$10.25B. However, the company provided fiscal 2017 EPS guidance of $8.25, versus the consensus outlook of of $8.55. BULLISH TAKE: Investors' disappointment with the company's Q3 results and its 2017 guidance was "overdone," wrote Cowen's Cai von Rumohr, who upgraded the stock to Outperform from Market Perform. L-3's Q3 results were hurt by delays of electronic shipments from Q3 until Q4 , while the company's 2017 EPS guidance "looks conservative," he stated. Moreover, the company's 2017 EPS outlook was hurt by its decision to slow its share repurchases in order to save money for M&A, von Rumohr reported. L-3 can benefit significantly from M&A synergies and should not encounter much competition from other acquirers, according to the analyst, who raised his price target on the shares to $160 from $155. BEARISH TAKE: Drexel Hamilton analyst Pete Skibitski lowered his rating on L-3 to Hold from Buy. He believes that L-3's stock could be hurt by rising interest rates and a rotation away from defense stocks. PRICE ACTION: In late morning trading, L-3 rose 0.7% to $138.66. The stock had also risen fractionally yesterday on the heels of the company's report.

2016-10-28 11:19:50

LLL

JX Luxventure

$138.64 / +0.89 (+0.65%)

11:19

10/28/16

10/28

11:19

10/28/16

11:19

Battlground: Analysts clash on L-3 outlook after mixed quarterly report

The shares of defense contractor L-3 Communications (LLL) are climbing slightly after the company reported higher than expected third quarter profits and raised its fiscal year 2016 revenue and profit guidance yesterday morning. However, the company's Q3 revenue and fiscal 2017 profit guidance came in below expectations. Two research firms disagreed on the company's outlook after its results, with Cowen upgrading the stock and Drexel Hamilton downgrading the shares. RESULTS: L-3's earnings per share from continuing operations came in at $1.88, versus the consensus outlook of $1.82. It reported Q3 revenue of $2.5B, versus the consensus outlook of $2.55B. L-3 raised its fiscal 2016 EPS guidance to $7.85-$7.95 from $7.65-$7.85. Analysts' consensus outlook was $7.88. It increased its full-year revenue guidance $10.25B-$10.35B from $10.15B-$10.25B. However, the company provided fiscal 2017 EPS guidance of $8.25, versus the consensus outlook of of $8.55. BULLISH TAKE: Investors' disappointment with the company's Q3 results and its 2017 guidance was "overdone," wrote Cowen's Cai von Rumohr, who upgraded the stock to Outperform from Market Perform. L-3's Q3 results were hurt by delays of electronic shipments from Q3 until Q4 , while the company's 2017 EPS guidance "looks conservative," he stated. Moreover, the company's 2017 EPS outlook was hurt by its decision to slow its share repurchases in order to save money for M&A, von Rumohr reported. L-3 can benefit significantly from M&A synergies and should not encounter much competition from other acquirers, according to the analyst, who raised his price target on the shares to $160 from $155. BEARISH TAKE: Drexel Hamilton analyst Pete Skibitski lowered his rating on L-3 to Hold from Buy. He believes that L-3's stock could be hurt by rising interest rates and a rotation away from defense stocks. PRICE ACTION: In late morning trading, L-3 rose 0.7% to $138.66. The stock had also risen fractionally yesterday on the heels of the company's report.