Exelis Q3 Profit Drops, But Beats Estimates; Cuts FY14 Outlook

(RTTNews) - Exelis Inc. (XLS) Friday reported a 34 percent decrease in its third-quarter earnings, impacted by 6 percent decline in revenues and higher expenses. For the quarter, the company's net income dropped to $52 million or $0.27 per share from $80 million or $0.41 per share. Adjusted earnings, which exclude costs related to the spin-off of Vectrus, were $0.32 per share. Analysts polled by Thomson Reuters expected earnings per share of $0.29 for the quarter. Analysts' estimates typically exclude one-time items. Revenues were down to $1.1 billion from $1.14 billion last year, while Wall Street expected it to be $777.55 million. Selling, general and administrative expenses grew to $117 million from $100 million a year ago. Looking ahead for fiscal 2014, the company now expects adjusted earnings per share of nearly $1.22, on sale of about $3.25 billion, below the previous guidance of $1.44 to $1.50, on revenue of nearly $4.45 billion. Analysts project earnings per share of $1.26, on sales of $3.48 billion.