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L3Harris (LHX) Q4 Earnings Top Estimates, Revenues Fall Y/Y
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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%.
L3Harris Technologies Inc Price, Consensus and EPS Surprise
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.
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 (LHX) Q4 Earnings Top Estimates, Revenues Fall Y/Y
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%.
L3Harris Technologies Inc Price, Consensus and EPS Surprise
L3Harris Technologies Inc price-consensus-eps-surprise-chart | L3Harris Technologies Inc Quote
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.