L-3 Communications Holdings, Inc.(NYSE:LLL) has posted lower profits in the third quarter on the back of cuts in U.S. defense spending. The company has however raised its outlook for the full year period.
The company which is into defense contracting, earned $192 million or $1.97 a share, down from $235 million or $2.24 a share in the same period last year. Excluding special items like tax benefit and an acquisition, adjusted profits are $1.87 a share, in line with analysts’ expectations.
Revenue fell 1 percent from $3.3 billion to $3.28 billion, but topped Street estimates of $3.25 billion. A drop in U.S. government and military spending impacted sales.
The company has however raised its full year outlook. It now expects earnings in the range of $7.80 and $7.90 a share, up from its earlier forecast range of $7.70 and $7.85 a share. The improved guidance is mainly due to an income tax gain and an acquisition.
It expects revenues in the range of $13 billion and $13.1 billion, higher than earlier forecast range of $12.95 billion and $13.15 billion. Analysts expect full year earnings of $7.81 a share on revenue of $13.04 billion.
L-3 shares rose $1.05 to $74.85 in yesterday’s trade.
Green Mountain Coffee Roasters Inc.(NASDAQ:GMCR) has finalized a deal with retailer Costco to produce store brand packs of coffee. Green Mountain is going through a tough phase on the back of expiry of its patents.
Green Mountain has already developed 2 coffee blends for Costco. It is also already partnering with Tully’s Coffee, Newman’s Own and Caribou Coffee.
Competitors like Starbucks have introduced their own single serve coffee makers and are eating into Green Mountain’s market share.
The stock rose $2.16 to $26.34, up almost 9 percent after the announcement of the deal.