Deutsche Bank Comments On L-3 Communications 1Q EPS

According to Deutsche Bank, L-3 Communications

reported "clean" 1Q EPS of $1.95, ahead of its/consensus of $1.86/$1.85. Deutsche Bank said that sales of $3.6B (-1% y/y) were just below its $3.65B estimate, though EBIT margin came in 30bps better at 10.8%, on much better performance at Aircraft Modernization & Maintenance (AM&M). “Importantly, mgmt opened the door (a crack) to some portfolio shaping particularly in the services area. Maintain Hold rating based on limited upside to our price target.” L-3 Communications closed the previous trading day at $77.69.