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L3Harris (LHX) Q3 Earnings Miss Estimates, EPS View Cut
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L3Harris Technologies, Inc.’s (LHX - Free Report) third-quarter 2022 adjusted earnings from continuing operations came in at $3.26 per share, which missed the Zacks Consensus Estimate of $3.44 by 5.2%. The bottom line however improved 1.6% from the year-ago quarter’s reported figure, driven by a lower adjusted tax rate and fewer average diluted shares outstanding.
Excluding one-time items, the company reported a GAAP loss of $1.56 per share against earnings of $2.39 recorded in the year-ago quarter.
Total Revenues
In the quarter under review, the company’s revenues came in at $4,246 million, lagging the Zacks Consensus Estimate of $4,429 million by 4.1%. However, revenues inched up 0.4% from the year-ago quarter’s $4,229 million.
L3Harris Technologies Inc Price, Consensus and EPS Surprise
Starting from first-quarter 2022, L3Harris Technologies has three reportable segments:
Integrated Mission Systems: Net revenues in the segment came in at $1,710 million, up 4.1% year over year, driven by higher revenues from ISR and Commercial aviation businesses.
Its adjusted operating income came in at $222 million during the third quarter of 2022.
Space and Airborne Systems: The segment recorded net revenues of $1,502 million in the third quarter, up 0.5% year over year. This upside was largely driven by growth in the responsive satellite program.
Operating income decreased 8% to $172 million while operating margin contracted 100 bps to 11.5%.
Communication Systems: Net revenues in the segment increased 4% to $1,068 million on account of higher volume from Tactical Communications.
Adjusted operating income remained flat at $258 million. Operating margin contracted 80 bps to 24.2%.
Financial Position
As of Sep 30, 2022, L3Harris had $529 million in cash and cash equivalents compared with $941 million as of Dec 31, 2021.
Long-term debt as of Sep 30, 2022 was $5,967 million compared with $7,048 million as of Dec 31, 2021.
Net cash inflow from operating activities amounted to $588 million at the end of third-quarter 2022 compared with the year-ago cash inflow of $484 million.
2022 View
L3Harris updated its 2022 outlook. It now expects to generate revenues worth $16.80 billion, compared with the prior guidance range of $17.30-$17.70 billion. The Zacks Consensus Estimate for revenues, pegged at $17.37 billion, lies above the updated guided figure.
Earnings in 2022 are now expected to be in the range of $12.75-$13.00 per share, compared with the prior guided range of $13.35-$13.65 per share. The Zacks Consensus Estimate for EPS, pegged at $13.44, lies above the guided range.
Zacks Rank
L3Harris currently carries a Zacks Rank #4 (Sell).
Lockheed Martin (LMT - Free Report) reported third-quarter 2022 adjusted earnings of $6.87 per share, which surpassed the Zacks Consensus Estimate of $6.58 by 4.4%. The bottom line also improved 4.1% year over year.
Its net sales amounted to $16.58 billion, which missed the Zacks Consensus Estimate of $16.82 billion by 1.4%. The top line, however, rose 3.5% from $16.03 billion reported in the year-ago quarter.
Raytheon Technologies’ (RTX - Free Report) third-quarter 2022 adjusted earnings per share of $1.21 beat the Zacks Consensus Estimate of $1.11 by 9%. However, the bottom-line figure dropped 4% year over year.
The company’s third-quarter sales of $16,951 million missed the Zacks Consensus Estimate of $17,003 million by 0.3%. The sales figure, however, rose 5% from $16,213 million recorded in the year-ago quarter.
Hexcel Corporation (HXL - Free Report) reported third-quarter 2022 adjusted earnings of 33 cents per share, which exceeded the Zacks Consensus Estimate of 32 cents by 3.1%. The bottom line improved a solid 153.8% year over year. In the third quarter, net sales totaled $364.7 million, which lagged the Zacks Consensus Estimate of $391 million by 6.8%. However, the top line witnessed an improvement of 9.3% from the year-ago quarter.
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L3Harris (LHX) Q3 Earnings Miss Estimates, EPS View Cut
L3Harris Technologies, Inc.’s (LHX - Free Report) third-quarter 2022 adjusted earnings from continuing operations came in at $3.26 per share, which missed the Zacks Consensus Estimate of $3.44 by 5.2%. The bottom line however improved 1.6% from the year-ago quarter’s reported figure, driven by a lower adjusted tax rate and fewer average diluted shares outstanding.
Excluding one-time items, the company reported a GAAP loss of $1.56 per share against earnings of $2.39 recorded in the year-ago quarter.
Total Revenues
In the quarter under review, the company’s revenues came in at $4,246 million, lagging the Zacks Consensus Estimate of $4,429 million by 4.1%. However, revenues inched up 0.4% from the year-ago quarter’s $4,229 million.
L3Harris Technologies Inc Price, Consensus and EPS Surprise
L3Harris Technologies Inc price-consensus-eps-surprise-chart | L3Harris Technologies Inc Quote
Segmental Performance
Starting from first-quarter 2022, L3Harris Technologies has three reportable segments:
Integrated Mission Systems: Net revenues in the segment came in at $1,710 million, up 4.1% year over year, driven by higher revenues from ISR and Commercial aviation businesses.
Its adjusted operating income came in at $222 million during the third quarter of 2022.
Space and Airborne Systems: The segment recorded net revenues of $1,502 million in the third quarter, up 0.5% year over year. This upside was largely driven by growth in the responsive satellite program.
Operating income decreased 8% to $172 million while operating margin contracted 100 bps to 11.5%.
Communication Systems: Net revenues in the segment increased 4% to $1,068 million on account of higher volume from Tactical Communications.
Adjusted operating income remained flat at $258 million. Operating margin contracted 80 bps to 24.2%.
Financial Position
As of Sep 30, 2022, L3Harris had $529 million in cash and cash equivalents compared with $941 million as of Dec 31, 2021.
Long-term debt as of Sep 30, 2022 was $5,967 million compared with $7,048 million as of Dec 31, 2021.
Net cash inflow from operating activities amounted to $588 million at the end of third-quarter 2022 compared with the year-ago cash inflow of $484 million.
2022 View
L3Harris updated its 2022 outlook. It now expects to generate revenues worth $16.80 billion, compared with the prior guidance range of $17.30-$17.70 billion. The Zacks Consensus Estimate for revenues, pegged at $17.37 billion, lies above the updated guided figure.
Earnings in 2022 are now expected to be in the range of $12.75-$13.00 per share, compared with the prior guided range of $13.35-$13.65 per share. The Zacks Consensus Estimate for EPS, pegged at $13.44, lies above the guided range.
Zacks Rank
L3Harris currently carries a Zacks Rank #4 (Sell).
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 third-quarter 2022 adjusted earnings of $6.87 per share, which surpassed the Zacks Consensus Estimate of $6.58 by 4.4%. The bottom line also improved 4.1% year over year.
Its net sales amounted to $16.58 billion, which missed the Zacks Consensus Estimate of $16.82 billion by 1.4%. The top line, however, rose 3.5% from $16.03 billion reported in the year-ago quarter.
Raytheon Technologies’ (RTX - Free Report) third-quarter 2022 adjusted earnings per share of $1.21 beat the Zacks Consensus Estimate of $1.11 by 9%. However, the bottom-line figure dropped 4% year over year.
The company’s third-quarter sales of $16,951 million missed the Zacks Consensus Estimate of $17,003 million by 0.3%. The sales figure, however, rose 5% from $16,213 million recorded in the year-ago quarter.
Hexcel Corporation (HXL - Free Report) reported third-quarter 2022 adjusted earnings of 33 cents per share, which exceeded the Zacks Consensus Estimate of 32 cents by 3.1%. The bottom line improved a solid 153.8% year over year.
In the third quarter, net sales totaled $364.7 million, which lagged the Zacks Consensus Estimate of $391 million by 6.8%. However, the top line witnessed an improvement of 9.3% from the year-ago quarter.