ANALYSTS UPBEAT ON LITTON EARNINGS.Byline: Dave McNary McNary may refer to:
Wall Street expects Litton Industries Named after inventor Charles Litton Sr., Litton Industries was a large defense contractor in the United States, bought by the Northrop Grumman Corporation in 2001. Inc. will post a solid gain in profits today in the face of profound changes at the high-tech conglomerate conglomerate, in business conglomerate, corporation whose asset growth, often very rapid, comes largely through the acquisition of, or merger with, other firms whose products are largely unrelated to each other or to that of the parent company. . The consensus of seven analysts surveyed by First Call Corp. predicts Litton will report earnings of $1.20 a share for its fourth quarter ended July 31, up 12 percent from the year-ago period and excluding a previously announced $88.9 million charge to cover the costs of leaving the commercial information-services business. That would follow a 12.2 percent gain in third-quarter earnings to $50.9 million, or $1.10 a share, on a 10.5 percent rise in revenues to $1.26 billion. Earnings for Woodland Hills-based Litton's fiscal year should hit $4.20, up 11.3 percent over fiscal 1998 following an 11.8 percent gain in 1997. ``That's pretty steady performance, and it should continue,'' noted Paul Nisbet, an analyst with JSA JSA - Japanese Standards Association. Research. ``We're expecting revenue growth of 8 (percent) to 9 percent for several years and 11 percent growth in earnings, so they're going to do well but nothing spectacular.'' Nisbet said the remaining information-systems business should post strong earnings gains of up to 17 percent, while electronics growth will be 5 percent or 6 percent, and shipbuilding should be about 5 percent. Revenues should rise about 7.5 percent corporatewide, mostly due to contributions from newly acquired Avondale Industries Inc. The fourth-quarter charge will cover costs of cutting 150 jobs, consolidation of facilities in Litton's electronic warfare Noun 1. electronic warfare - military action involving the use of electromagnetic energy to determine or exploit or reduce or prevent hostile use of the electromagnetic spectrum EW military action, action - a military engagement; "he saw action in Korea" unit and cost of Litton's guilty plea and $18.5 million penalty to settle a federal overseas payment case. The report will also be the last one that does not include contributions from New Orleans-based Avondale. Litton completed the $529 million Avondale buyout Buyout The purchase of a company or a controlling interest of a corporation's shares. Notes: A leveraged buyout is accomplished with borrowed money or by issuing more stock. on Aug. 2, the same day it announced its exit from the commercial information-technology business in favor of upon the side of; favorable to; for the advantage of. See also: favor working for the federal government. Shares of Litton rose 50 cents to $64.25. The issue is down 11 percent from its 1999 high of $72.4375 on July 8. |
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