L-3 Communications Q4 Earnings Recap
L-3 Communications (LLL: 79.02, +0.67 (+0.86%)), the sixth largest defense company in the United States, was raised to outperform by Credit Suisse around January 13, and after some of the great news that news that has come along with their Q4 earnings, it is well positioned to outperform the broader market. This industry is strong, has been strong over the last year, and will continue to be strong in 2009. There are people saying the Obama administration will pose a challenge to Aerospace and Defense, but many, including myself, are willing to bet that America’s 44th and current president will not slash weapons programs (I will get into why a little later). If he does, it is a mistake, similar to the lack of tax cuts that should be provided to large corporations (but that are another argument in itself). Over the last month, LLL has outperformed the broader market by about 14%, with good reason. This earnings release paired with the earnings of Raytheon Co. (RTN: 50.62, +0.32 (+0.64%)) really emphasize the strength in defense businesses that Lockheed Martin Corp.
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