LLL – Market expectations are for Uniform ROA expansion, but management has concerns about budget uncertainty, international operations, and operating margin

• • • L3 Technologies, Inc. (LLL:USA)currently trades near historical highs relative to UAFRS-based (Uniform) Earnings, with a 23.4x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about budget uncertainty, international operations, and operating margin
    • Specifically, management may have concerns about the uncertainty surrounding the U.S. Defense budget, and may lack confidence in their ability to grow their international operations through their new boards in Australia, Canada, and the U.K. Moreover, they may have concerns about declining operating margin as a result of restructuring charges, and may lack confidence in their ability to make acquisitions given their cash balance