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L3Harris (LHX) Q4 Earnings Beat Estimates, Sales Up Y/Y
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L3Harris Technologies, Inc.’s (LHX - Free Report) fourth-quarter 2022 adjusted earnings from continuing operations came in at $3.27 per share, which beat the Zacks Consensus Estimate of $3.21 by 1.9%. However, the bottom line declined 0.9% from the year-ago quarter’s reported figure.
Excluding one-time items, the company reported GAAP earnings of $2.17 per share compared with earnings of $2.46 recorded in the year-ago quarter. For the full-year 2022, LHX reported earnings of $12.90 per share, which beat the Zacks Consensus Estimate of $12.86 by 0.3%.
Total Revenues
In the quarter under review, L3Harris’ revenues came in at $4,578 million, beating the Zacks Consensus Estimate of $4,333 million by 5.7%. Revenues rose 5.2% from the year-ago quarter’s $4,350 million.
For the full-year 2022, total revenues came in at $17.06 billion, beating the Zacks Consensus Estimate of $16.82 billion by 1.4%. However, net sales declined 4.4% year over year.
L3Harris Technologies Inc Price, Consensus and EPS Surprise
Integrated Mission Systems: Net revenues in the segment came in at $1,710 million, down 2.1% year over year, driven by lower revenues from the ISR and NATO aircraft missionization program. Its adjusted operating income came in at $177 million in the fourth quarter of 2022.
Space and Airborne Systems: The segment recorded net revenues of $1,610 million in the fourth quarter, up 7.3% year over year. This upside was largely driven by the ramp-up in the Space, Intel & Cyber and airborne businesses.
The operating income increased 10.1% to $196 million. Meanwhile, the operating margin expanded 30 bps to 12.2%.
Communication Systems: Net revenues in the segment increased 17.2% to $1,193 million due to higher volumes from Tactical Communications. The adjusted operating income increased 24.3% to $258 million from the year-ago quarter. The operating margin expanded 140 bps to 24.9%.
Financial Position
As of Dec 30, 2022, L3Harris had $880 million in cash and cash equivalents compared with $941 million as of Dec 31, 2021.
The long-term debt as of Dec 30, 2022 was $6,225 million compared with $7,048 million as of Dec 31, 2021. Net cash inflow from operating activities amounted to $2,158 million at the end of 2022 compared with the year-ago cash inflow of $2,687 million.
2023 View
L3Harris initiated its 2023 outlook. It expects to generate revenues in the range of $17.40-$17.80 billion. The Zacks Consensus Estimate for revenues, pegged at $17.45 billion, is lower than the midpoint of the guided figure.
Earnings in 2023 are expected in the range of $12.00-$12.50 per share. The Zacks Consensus Estimate for EPS, pegged at $12.64, is higher than the midpoint of the guided range.
LHX expects adjusted free cash flow to be more than $2.0 billion in 2023.
Teledyne Technologies Inc. (TDY - Free Report) reported fourth-quarter 2022 adjusted earnings of $4.94 per share, which surpassed the Zacks Consensus Estimate of $4.52 by 9.3%. The bottom line improved 8.3% from the year-ago quarter’s $4.56 per share.
Total sales in the fourth quarter amounted to $1,418.2 million, which beat the Zacks Consensus Estimate of $1,408 million by 0.7%. The top line improved 3.1% from the $1,375.7 million reported a year ago.
Textron Inc. (TXT - Free Report) reported fourth-quarter 2022 adjusted earnings of $1.07 per share, which surpassed the Zacks Consensus Estimate of $1.01 by 5.9%. The bottom line also improved by 13.8% from the year-ago quarter’s figure.
Total revenues came in at $3,636 million, which missed the Zacks Consensus Estimate of $3,670.2 million by 0.9%. However, the reported figure increased 9.5% from the year-ago quarter’s $3,322 million.
Raytheon Technologies Corporation’s (RTX - Free Report) fourth-quarter 2022 adjusted earnings per share of $1.27 beat the Zacks Consensus Estimate of $1.24 by 2.4%. Moreover, the bottom line improved 18% from the year-ago quarter’s adjusted earnings of $1.08 per share.
For the full-year 2022, the company reported adjusted earnings of $4.78 per share, which came in 12% higher than the year-ago figure of $4.27. The full-year bottom line also surpassed the Zacks Consensus Estimate of $4.76 per share by 0.4%.
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L3Harris (LHX) Q4 Earnings Beat Estimates, Sales Up Y/Y
L3Harris Technologies, Inc.’s (LHX - Free Report) fourth-quarter 2022 adjusted earnings from continuing operations came in at $3.27 per share, which beat the Zacks Consensus Estimate of $3.21 by 1.9%. However, the bottom line declined 0.9% from the year-ago quarter’s reported figure.
Excluding one-time items, the company reported GAAP earnings of $2.17 per share compared with earnings of $2.46 recorded in the year-ago quarter. For the full-year 2022, LHX reported earnings of $12.90 per share, which beat the Zacks Consensus Estimate of $12.86 by 0.3%.
Total Revenues
In the quarter under review, L3Harris’ revenues came in at $4,578 million, beating the Zacks Consensus Estimate of $4,333 million by 5.7%. Revenues rose 5.2% from the year-ago quarter’s $4,350 million.
For the full-year 2022, total revenues came in at $17.06 billion, beating the Zacks Consensus Estimate of $16.82 billion by 1.4%. However, net sales declined 4.4% year over year.
L3Harris Technologies Inc Price, Consensus and EPS Surprise
L3Harris Technologies Inc price-consensus-eps-surprise-chart | L3Harris Technologies Inc Quote
Segmental Performance
Integrated Mission Systems: Net revenues in the segment came in at $1,710 million, down 2.1% year over year, driven by lower revenues from the ISR and NATO aircraft missionization program. Its adjusted operating income came in at $177 million in the fourth quarter of 2022.
Space and Airborne Systems: The segment recorded net revenues of $1,610 million in the fourth quarter, up 7.3% year over year. This upside was largely driven by the ramp-up in the Space, Intel & Cyber and airborne businesses.
The operating income increased 10.1% to $196 million. Meanwhile, the operating margin expanded 30 bps to 12.2%.
Communication Systems: Net revenues in the segment increased 17.2% to $1,193 million due to higher volumes from Tactical Communications. The adjusted operating income increased 24.3% to $258 million from the year-ago quarter. The operating margin expanded 140 bps to 24.9%.
Financial Position
As of Dec 30, 2022, L3Harris had $880 million in cash and cash equivalents compared with $941 million as of Dec 31, 2021.
The long-term debt as of Dec 30, 2022 was $6,225 million compared with $7,048 million as of Dec 31, 2021. Net cash inflow from operating activities amounted to $2,158 million at the end of 2022 compared with the year-ago cash inflow of $2,687 million.
2023 View
L3Harris initiated its 2023 outlook. It expects to generate revenues in the range of $17.40-$17.80 billion. The Zacks Consensus Estimate for revenues, pegged at $17.45 billion, is lower than the midpoint of the guided figure.
Earnings in 2023 are expected in the range of $12.00-$12.50 per share. The Zacks Consensus Estimate for EPS, pegged at $12.64, is higher than the midpoint of the guided range.
LHX expects adjusted free cash flow to be more than $2.0 billion in 2023.
Zacks Rank
L3Harris currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Teledyne Technologies Inc. (TDY - Free Report) reported fourth-quarter 2022 adjusted earnings of $4.94 per share, which surpassed the Zacks Consensus Estimate of $4.52 by 9.3%. The bottom line improved 8.3% from the year-ago quarter’s $4.56 per share.
Total sales in the fourth quarter amounted to $1,418.2 million, which beat the Zacks Consensus Estimate of $1,408 million by 0.7%. The top line improved 3.1% from the $1,375.7 million reported a year ago.
Textron Inc. (TXT - Free Report) reported fourth-quarter 2022 adjusted earnings of $1.07 per share, which surpassed the Zacks Consensus Estimate of $1.01 by 5.9%. The bottom line also improved by 13.8% from the year-ago quarter’s figure.
Total revenues came in at $3,636 million, which missed the Zacks Consensus Estimate of $3,670.2 million by 0.9%. However, the reported figure increased 9.5% from the year-ago quarter’s $3,322 million.
Raytheon Technologies Corporation’s (RTX - Free Report) fourth-quarter 2022 adjusted earnings per share of $1.27 beat the Zacks Consensus Estimate of $1.24 by 2.4%. Moreover, the bottom line improved 18% from the year-ago quarter’s adjusted earnings of $1.08 per share.
For the full-year 2022, the company reported adjusted earnings of $4.78 per share, which came in 12% higher than the year-ago figure of $4.27. The full-year bottom line also surpassed the Zacks Consensus Estimate of $4.76 per share by 0.4%.