Drexel Hamilton Reiterates Hold Rating for Exelis

In a report released earlier today, Drexel Hamilton, LLC reiterated its Hold rating for Exelis, Inc. XLS, but did not name a price target. Drexel Hamilton went on to say “XLS reported 1Q12 EPS of $0.37 GAAP EPS vs. our and the Street's $0.41 estimate, on Friday. Factoring out $0.03 of higher tax rate and $0.04 incremental separation costs, we believe apples to apples the company beat expectations by $0.03. Higher revenue, which beat our forecast by 5.6% on timing, accounted for most of the beat. Factoring out all separation costs, which amounted to $18m after-tax ($0.10) in the quarter, adjusted EPS was $0.47, vs. the prior year's $0.45.” Exelis, Inc. closed on Friday at $11.81.