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L3Harris Technologies, Inc. (LHX - Free Report) reported first-quarter 2024 adjusted earnings (from continuing operations) of $3.06 per share, which beat the Zacks Consensus Estimate of $2.89 by 5.9%. The bottom line also increased 7% from the year-ago quarter’s reported figure of $2.86.
Excluding one-time items, the company reported GAAP earnings of $1.48 per share, down from $1.76 generated in the prior-year period.
L3Harris Technologies Inc Price, Consensus and EPS Surprise
L3Harris’ first-quarter revenues totaled $5.21 billion, which beat the Zacks Consensus Estimate of $5.11 billion by 2%. The top line figure also rose 16.6% from the year-ago quarter’s level of $4.47 billion.
The year-over-year top-line improvement can be attributed to the acquisition of Aerojet Rocketdyne and organic growth from Space and classified programs within the Space & Airborne Systems segment. Growth from tactical, broadband communication and vision products within the Communication Systems segment also contributed to overall revenue growth.
Segmental Performance
Integrated Mission Systems: The segment recorded net revenues of $1.67 billion, down 1.8% year over year. This was due to lower Intelligence, Surveillance and Reconnaissance aircraft procurement activity.
This segment recorded an operating income of $190 million compared to the operating income of $185 million in the first quarter of 2023. The segment’s operating margin expanded 50 basis points (bps) to 11.4%, driven by improved program performance.
Space and Airborne Systems: Net revenues from the segment were $1.75 billion, up 5.8% year over year. This upside was largely driven by growth from Space Systems and classified program growth in Intel and Cyber.
The operating income improved to $216 million from $187 million reported in the year-ago quarter. The operating margin expanded 100 bps to 12.3%, driven by improved operational and program performance, particularly in the Space Systems unit.
Communication Systems: Net revenues from this segment increased 11.3% to $1.29 billion. This increase was primarily due to higher volumes in Tactical Communications, Integrated Vision Systems and Broadband Communications.
The operating income improved to $310 million from $266 million reported in the year-ago quarter. The operating margin improved 110 bps to 24%, driven by higher volume and improved operational performance in Integrated Vision Systems.
Aerojet Rocketdyne: This segment reported revenues of $542 million and an operating income of $72 million in the first quarter of 2024.
Financial Position
As of Mar 29, 2024, L3Harris had $477 million in cash and cash equivalents compared with $560 million as of Dec 29, 2023.
The long-term debt as of Mar 29, 2024 was $11.14 billion compared with $11.16 million as of Dec 29, 2023.
The net cash outflow from operating activities amounted to $104 million during the first quarter of 2024 against net cash flow from operating activities worth $350 million generated in the prior year.
At the end of the first quarter of 2024, L3Harris’s free cash outflow came in at $156 million against free cash flow worth $315 million at the end of the first quarter of 2023.
2024 Guidance
L3Harris updated its 2024 guidance. It now expects to generate revenues in the range of $20.80-$21.30 billion, narrower than its earlier guidance range of $20.70-$21.30 billion. The Zacks Consensus Estimate for revenues is pegged at $21.22 billion, higher than the midpoint of the company’s guided range.
LHX increased its 2024 adjusted earnings to the range of $12.70-$13.05 per share from the prior guidance range of $12.40-$12.80. The Zacks Consensus Estimate for the same is pegged at $12.73 per share, lower than the midpoint of the projected range.
LHX still expects to generate approximately adjusted free cash flow worth $2.2 billion.
RTX Corporation’s (RTX - Free Report) first-quarter 2024 adjusted earnings per share of $1.34 beat the Zacks Consensus Estimate of $1.23 by 8.9%. The bottom line also improved 9.8% from the year-ago quarter’s level of $1.22.
RTX’s first-quarter net sales were $19,305 million, which surpassed the Zacks Consensus Estimate of $18,412.6 million by 4.8%. The top line also improved 12% from $17,214 million recorded in the first quarter of 2023.
Lockheed Martin Corporation (LMT - Free Report) reported first-quarter 2024 adjusted earnings of $6.33 per share, which beat the Zacks Consensus Estimate of $5.80 by 9.1%. However, the bottom line declined 1.6% from the year-ago quarter's recorded figure of $6.43.
Its net sales were $17.20 billion, which surpassed the Zacks Consensus Estimate of $16.19 billion by 6.2%. The top line also increased 13.7% from $15.13 billion reported in the year-ago quarter.
Hexcel Corporation (HXL - Free Report) reported first-quarter 2024 adjusted earnings of 44 cents per share, which came in line with the Zacks Consensus Estimate.
In the first quarter, the company’s net sales totaled $472.3 million, which missed the Zacks Consensus Estimate of $475 million by 0.6%. However, the top line witnessed an improvement of 3.2% from the year-ago quarter’s reported figure of $457.7 million.
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L3Harris (LHX) Beats Q1 Earnings Estimates, Hikes '24 EPS View
L3Harris Technologies, Inc. (LHX - Free Report) reported first-quarter 2024 adjusted earnings (from continuing operations) of $3.06 per share, which beat the Zacks Consensus Estimate of $2.89 by 5.9%. The bottom line also increased 7% from the year-ago quarter’s reported figure of $2.86.
Excluding one-time items, the company reported GAAP earnings of $1.48 per share, down from $1.76 generated in the prior-year period.
L3Harris Technologies Inc Price, Consensus and EPS Surprise
L3Harris Technologies Inc price-consensus-eps-surprise-chart | L3Harris Technologies Inc Quote
Total Revenues
L3Harris’ first-quarter revenues totaled $5.21 billion, which beat the Zacks Consensus Estimate of $5.11 billion by 2%. The top line figure also rose 16.6% from the year-ago quarter’s level of $4.47 billion.
The year-over-year top-line improvement can be attributed to the acquisition of Aerojet Rocketdyne and organic growth from Space and classified programs within the Space & Airborne Systems segment. Growth from tactical, broadband communication and vision products within the Communication Systems segment also contributed to overall revenue growth.
Segmental Performance
Integrated Mission Systems: The segment recorded net revenues of $1.67 billion, down 1.8% year over year. This was due to lower Intelligence, Surveillance and Reconnaissance aircraft procurement activity.
This segment recorded an operating income of $190 million compared to the operating income of $185 million in the first quarter of 2023. The segment’s operating margin expanded 50 basis points (bps) to 11.4%, driven by improved program performance.
Space and Airborne Systems: Net revenues from the segment were $1.75 billion, up 5.8% year over year. This upside was largely driven by growth from Space Systems and classified program growth in Intel and Cyber.
The operating income improved to $216 million from $187 million reported in the year-ago quarter. The operating margin expanded 100 bps to 12.3%, driven by improved operational and program performance, particularly in the Space Systems unit.
Communication Systems: Net revenues from this segment increased 11.3% to $1.29 billion. This increase was primarily due to higher volumes in Tactical Communications, Integrated Vision Systems and Broadband Communications.
The operating income improved to $310 million from $266 million reported in the year-ago quarter. The operating margin improved 110 bps to 24%, driven by higher volume and improved operational performance in Integrated Vision Systems.
Aerojet Rocketdyne: This segment reported revenues of $542 million and an operating income of $72 million in the first quarter of 2024.
Financial Position
As of Mar 29, 2024, L3Harris had $477 million in cash and cash equivalents compared with $560 million as of Dec 29, 2023.
The long-term debt as of Mar 29, 2024 was $11.14 billion compared with $11.16 million as of Dec 29, 2023.
The net cash outflow from operating activities amounted to $104 million during the first quarter of 2024 against net cash flow from operating activities worth $350 million generated in the prior year.
At the end of the first quarter of 2024, L3Harris’s free cash outflow came in at $156 million against free cash flow worth $315 million at the end of the first quarter of 2023.
2024 Guidance
L3Harris updated its 2024 guidance. It now expects to generate revenues in the range of $20.80-$21.30 billion, narrower than its earlier guidance range of $20.70-$21.30 billion. The Zacks Consensus Estimate for revenues is pegged at $21.22 billion, higher than the midpoint of the company’s guided range.
LHX increased its 2024 adjusted earnings to the range of $12.70-$13.05 per share from the prior guidance range of $12.40-$12.80. The Zacks Consensus Estimate for the same is pegged at $12.73 per share, lower than the midpoint of the projected range.
LHX still expects to generate approximately adjusted free cash flow worth $2.2 billion.
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
RTX Corporation’s (RTX - Free Report) first-quarter 2024 adjusted earnings per share of $1.34 beat the Zacks Consensus Estimate of $1.23 by 8.9%. The bottom line also improved 9.8% from the year-ago quarter’s level of $1.22.
RTX’s first-quarter net sales were $19,305 million, which surpassed the Zacks Consensus Estimate of $18,412.6 million by 4.8%. The top line also improved 12% from $17,214 million recorded in the first quarter of 2023.
Lockheed Martin Corporation (LMT - Free Report) reported first-quarter 2024 adjusted earnings of $6.33 per share, which beat the Zacks Consensus Estimate of $5.80 by 9.1%. However, the bottom line declined 1.6% from the year-ago quarter's recorded figure of $6.43.
Its net sales were $17.20 billion, which surpassed the Zacks Consensus Estimate of $16.19 billion by 6.2%. The top line also increased 13.7% from $15.13 billion reported in the year-ago quarter.
Hexcel Corporation (HXL - Free Report) reported first-quarter 2024 adjusted earnings of 44 cents per share, which came in line with the Zacks Consensus Estimate.
In the first quarter, the company’s net sales totaled $472.3 million, which missed the Zacks Consensus Estimate of $475 million by 0.6%. However, the top line witnessed an improvement of 3.2% from the year-ago quarter’s reported figure of $457.7 million.