L3 Technologies Inc. LLL recently reported its preliminary third-quarter 2018 results. The company anticipates both earnings and revenues to grow, on a year-over-year basis in the upcoming quarterly release expected on Oct 25.Preliminary ResultsFor the third quarter, L3 Technologies anticipates net sales to be $2,519 million, reflecting 10% growth from the year-ago quarter. Interestingly, the estimate is also higher than the Zacks Consensus Estimate for third-quarter revenues, which is pegged at $2,496 million.L3 Technologies also projects third-quarter adjusted earnings per share (EPS) to be $2.85, reflecting 59% growth from the year-ago quarter. In this context, the adjusted diluted EPS from continuing operations includes a debt retirement charge of 21 cents per diluted share, and merger, acquisition and divestiture related expenses of 10 cents per diluted share. The estimated EPS, just like revenues, is also higher than the Zacks Consensus Estimate, which is pegged at $2.39.The company’s funded orders increased 16% year-over-year to $3,187 million, with a book-to-bill ratio of 1.27x.What Led to the Improved Result?Notably, there were several factors that led to the impressive third-quarter preliminary results. Firstly, L3 Technologies witnessed a fairly strong order growth in the third quarter, with the company acquiring a contract worth $454 million from the U.S. Army for its Electro-Optic/Infrared (EO/IR) — Laser Designator Payload. It also bagged a $48.1-million contract for the F-16 Mission Training Center (MTC) program along with securing other notable contracts.Moreover, in the month of July, L3 Technologies divested Vertex Aerospace for $540 million, which was a strategic step toward aligning and optimizing company’s portfolio. Owing to the divestiture, the company anticipated to record a gain of approximately $400 million after tax, which must have economically benefited the company in the reported quarter.Our ViewThe company’s effective income tax rate for third-quarter 2018 declined to 8% compared with 24% for third-quarter 2017. Such decline can be primarily attributed to the reversal of previously accrued amounts related to various U.S. Federal, foreign and state tax matters, and tax benefits from the U.S. Tax Cuts and Jobs Act (U.S. Tax Reform), and stock-based compensation expenses. We expect L3 Technologies to benefit significantly from such lower tax rates, which should get reflected in the upcoming quarterly results.Budgetary DevelopmentsIn August, the U.S. Senate approved the fiscal 2019 defense budget that reflected 5% real growth more than the initial fiscal 2018 budget. Such developments should benefit L3 Technologies in clinching increased number of contracts in the days ahead, thereby boosting its top line. Other U.S.-based defense giants like Lockheed Martin LMT, Boeing BA and Huntington Ingalls Industries HII will also be some of the other significant beneficiaries of this budgetary revision.5 Medical Stocks to Buy NowZacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.Click here to see the 5 stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Huntington Ingalls Industries, Inc. (HII): Free Stock Analysis Report Lockheed Martin Corporation (LMT): Free Stock Analysis Report The Boeing Company (BA): Free Stock Analysis Report L3 Technologies Inc. (LLL): Free Stock Analysis Report To read this article on Zacks.com click here.