L3Harris Technologies, Inc.’s (LHX - Free Report) fourth-quarter 2021 adjusted earnings from continuing operations came in at $3.30 per share, which surpassed the Zacks Consensus Estimate of $3.25 by 1.5%. The bottom line also increased 5% from the year-ago quarter’s $3.14 per share.
Excluding one-time items, the company reported GAAP earnings of $2.46 per share compared with 92 cents in the year-ago quarter.
For 2021, earnings were $12.95 per share, up 12% from the year-ago quarter. Moreover, 2021 earnings exceeded the Zacks Consensus Estimate of $12.92 by 0.2%.
Total Revenues
In the quarter under review, the company’s revenues came in at $4,350 million, missing the Zacks Consensus Estimate of $4,467 million by 2.7%. Moreover, revenues declined 7% from the year-ago quarter’s $4,660 million.
Revenues in the reported quarter were primarily impacted by divestitures within Aviation Systems and supply chain-related constraints within Communication Systems.
In 2021, total revenues declined 2% year over year to $17,814 million. Full-year revenues, however, missed the Zacks Consensus Estimate of $17,920 million by 0.6%.
Segmental Performance
Integrated Mission Systems: Net revenues in the segment came in at $1,558 million, up 6% year over year, driven by growth in aircraft missionization on a NATO program and in Electro Optical from higher product deliveries.
Operating income improved 24% year over year to $259 million while operating margin expanded 230 basis points (bps) to 16.6%.
Space and Airborne Systems: The segment recorded net revenues of $1,286 million in the fourth quarter, up 2% year over year. This upside was driven by a ramp-up in missile defense and other responsive programs.
Operating income decreased 4% to $235 million while operating margin contracted 120 bps to 18.3%.
Communication Systems: Net revenues in the segment declined 11% to $1,018 million on account of product delivery delays from supply chain-related constraints mainly within Tactical Communications, lower volume on legacy platforms in Broadband Communications, contract roll-offs in Global Communications Solutions, and delivery timing within Integrated Vision Solutions.
Operating income declined 15% to $253 million. Operating margin contracted 100 bps to 24.9%.
Aviation Systems: Net revenues declined 37% to $535 million, primarily due to divestitures. Also, lower revenues from contract roll-offs and delayed awards within Defense Aviation, as well as lower FAA volume in Mission Networks contributed to the poor top-line performance.
The segment reported an operating income of $77 million, down 39%. Operating margin contracted 50 bps to 14.4%.
Financial Position
As of Dec 31, 2021, L3Harris had $941 million in cash and cash equivalents compared with $1,276 million as of Jan 1, 2021.
Long-term debt as of Dec 31, 2021 was $7,048 million compared with $6,943 million as of Jan 1, 2021.
Net cash inflow from operating activities amounted to $2,2687 million at the end of 2021 compared with the year-ago cash inflow of $2,790 million.
2022 View
L3Harris currently expects to generate revenues of $17.5 billion in 2022. The Zacks Consensus Estimate for revenues, pegged at $18.18 billion, is higher than the guided figure.
Earnings in 2022 are expected to be in the range of $13.35-$13.65 per share. The Zacks Consensus Estimate for EPS, pegged at $13.50, is in line with the midpoint of the guided range.
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
Lockheed Martin (LMT - Free Report) reported fourth-quarter 2021 adjusted earnings of $7.24 per share, which surpassed the Zacks Consensus Estimate of $7.23 by 0.1%. Its net sales amounted to $17.73 billion, which outpaced the Zacks Consensus Estimate by 0.4%.
Lockheed Martin ended 2021 (on Dec 31, 2021) with $135.36 billion in backlog compared with $147.13 billion at the end of 2020. Its cash from operations at the end of 2021 amounted to $9.22 billion compared with $8.18 billion a year ago.
Raytheon Technologies’ (RTX - Free Report) fourth-quarter 2021 adjusted earnings per share of $1.08 beat the Zacks Consensus Estimate of $1.01 by 6.9%. Its sales of $17,044 million missed the Zacks Consensus Estimate of $17,215 million by 1%.
Raytheon Technologies had cash and cash equivalents of $7,832 million as of Dec 31, 2021, compared with $8,802 million as of Dec 31, 2020. The company currently projects adjusted EPS in the range of $4.60-$4.80 for 2022.
Boeing (BA - Free Report) incurred an adjusted loss of $7.69 per share for fourth-quarter 2021, much wider than the Zacks Consensus Estimate of a loss of 9 cents. Its revenues amounted to $14.79 billion, which missed the Zacks Consensus Estimate of $16.96 billion by 12.8%.
Boeing’s backlog at the end of fourth-quarter 2021 increased to $377.50 billion from $363.40 billion at the end of 2020. The company’s operating cash outflow at the end of 2021 was $3.42 billion compared with $18.41 billion at the end of 2020.
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L3Harris Technologies, Inc.’s (LHX - Free Report) fourth-quarter 2021 adjusted earnings from continuing operations came in at $3.30 per share, which surpassed the Zacks Consensus Estimate of $3.25 by 1.5%. The bottom line also increased 5% from the year-ago quarter’s $3.14 per share.
Excluding one-time items, the company reported GAAP earnings of $2.46 per share compared with 92 cents in the year-ago quarter.
For 2021, earnings were $12.95 per share, up 12% from the year-ago quarter. Moreover, 2021 earnings exceeded the Zacks Consensus Estimate of $12.92 by 0.2%.
Total Revenues
In the quarter under review, the company’s revenues came in at $4,350 million, missing the Zacks Consensus Estimate of $4,467 million by 2.7%. Moreover, revenues declined 7% from the year-ago quarter’s $4,660 million.
Revenues in the reported quarter were primarily impacted by divestitures within Aviation Systems and supply chain-related constraints within Communication Systems.
In 2021, total revenues declined 2% year over year to $17,814 million. Full-year revenues, however, missed the Zacks Consensus Estimate of $17,920 million by 0.6%.
Segmental Performance
Integrated Mission Systems: Net revenues in the segment came in at $1,558 million, up 6% year over year, driven by growth in aircraft missionization on a NATO program and in Electro Optical from higher product deliveries.
Operating income improved 24% year over year to $259 million while operating margin expanded 230 basis points (bps) to 16.6%.
Space and Airborne Systems: The segment recorded net revenues of $1,286 million in the fourth quarter, up 2% year over year. This upside was driven by a ramp-up in missile defense and other responsive programs.
Operating income decreased 4% to $235 million while operating margin contracted 120 bps to 18.3%.
Communication Systems: Net revenues in the segment declined 11% to $1,018 million on account of product delivery delays from supply chain-related constraints mainly within Tactical Communications, lower volume on legacy platforms in Broadband Communications, contract roll-offs in Global Communications Solutions, and delivery timing within Integrated Vision Solutions.
Operating income declined 15% to $253 million. Operating margin contracted 100 bps to 24.9%.
Aviation Systems: Net revenues declined 37% to $535 million, primarily due to divestitures. Also, lower revenues from contract roll-offs and delayed awards within Defense Aviation, as well as lower FAA volume in Mission Networks contributed to the poor top-line performance.
The segment reported an operating income of $77 million, down 39%. Operating margin contracted 50 bps to 14.4%.
Financial Position
As of Dec 31, 2021, L3Harris had $941 million in cash and cash equivalents compared with $1,276 million as of Jan 1, 2021.
Long-term debt as of Dec 31, 2021 was $7,048 million compared with $6,943 million as of Jan 1, 2021.
Net cash inflow from operating activities amounted to $2,2687 million at the end of 2021 compared with the year-ago cash inflow of $2,790 million.
2022 View
L3Harris currently expects to generate revenues of $17.5 billion in 2022. The Zacks Consensus Estimate for revenues, pegged at $18.18 billion, is higher than the guided figure.
Earnings in 2022 are expected to be in the range of $13.35-$13.65 per share. The Zacks Consensus Estimate for EPS, pegged at $13.50, is in line with the midpoint of the guided range.
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
Lockheed Martin (LMT - Free Report) reported fourth-quarter 2021 adjusted earnings of $7.24 per share, which surpassed the Zacks Consensus Estimate of $7.23 by 0.1%. Its net sales amounted to $17.73 billion, which outpaced the Zacks Consensus Estimate by 0.4%.
Lockheed Martin ended 2021 (on Dec 31, 2021) with $135.36 billion in backlog compared with $147.13 billion at the end of 2020. Its cash from operations at the end of 2021 amounted to $9.22 billion compared with $8.18 billion a year ago.
Raytheon Technologies’ (RTX - Free Report) fourth-quarter 2021 adjusted earnings per share of $1.08 beat the Zacks Consensus Estimate of $1.01 by 6.9%. Its sales of $17,044 million missed the Zacks Consensus Estimate of $17,215 million by 1%.
Raytheon Technologies had cash and cash equivalents of $7,832 million as of Dec 31, 2021, compared with $8,802 million as of Dec 31, 2020. The company currently projects adjusted EPS in the range of $4.60-$4.80 for 2022.
Boeing (BA - Free Report) incurred an adjusted loss of $7.69 per share for fourth-quarter 2021, much wider than the Zacks Consensus Estimate of a loss of 9 cents. Its revenues amounted to $14.79 billion, which missed the Zacks Consensus Estimate of $16.96 billion by 12.8%.
Boeing’s backlog at the end of fourth-quarter 2021 increased to $377.50 billion from $363.40 billion at the end of 2020. The company’s operating cash outflow at the end of 2021 was $3.42 billion compared with $18.41 billion at the end of 2020.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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