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Will Segmental Revenues Aid L3Harris (LHX) Q4 Earnings?
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L3Harris Technologies, Inc. (LHX - Free Report) is slated to report its fourth-quarter and full-year 2022 results on Jan 26 after market close.
L3Harris Technologies has a four-quarter earnings surprise of 0.46%, on average. Strong revenue performance across all its business segments may have contributed to its overall fourth-quarter top line. However, supply-chain headwinds and net higher inflationary input costs may have dented the bottom line.
Integrated Mission Systems – a Key Catalyst
Increased revenues from the newly awarded armed overwatch program and commercial aviation solutions are expected to have benefited this segment’s revenues in the fourth quarter of 2022.
The Zacks Consensus Estimate for Integrated Mission Systems’ fourth-quarter revenues, pegged at $1,706 million, suggests growth of 9.5% from the year-ago quarter’s reported figure.
Space and Airborne Systems – Another Revenue Contributor
An increase in revenues from responsive satellite programs is likely to have boosted revenues from the Space and Airborne Systems segment in the fourth quarter.
The Zacks Consensus Estimate for Space and Airborne Systems’ fourth-quarter revenues, pegged at $1,548 million, suggests an improvement of 20.4% from the year-ago quarter’s reported figure.
Communication Systems to Boost Revenues
Higher volume sales for Tactical Communications are likely to have positively impacted the revenues of the segment in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for Communication Systems’ fourth-quarter revenues is pegged at $1,130 million, implying a growth rate of 11% from the prior-year reported figure.
In the fourth quarter of 2022, LHX’s top line is likely to have benefited from an improvement in revenues across all its segments. However, lower deliveries due to volatility in the availability of electronic components might have an adverse impact on the overall top line.
Meanwhile, supply-chain headwinds and net higher inflationary input costs may continue to impact the bottom line in the soon-to-be-reported quarter. The Zacks Consensus Estimate for fourth-quarter sales is pegged at $4.33 billion, indicating a decline of 0.4% from the prior-year reported figure.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $3.21 per share, suggesting a decrease of 2.7% from the prior-year reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for L3Harris Technologies this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
L3Harris Technologies has an Earnings ESP of -1.38% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are three defense players you may want to consider as these have the right combination of elements to post an earnings beat this season:
Airbus boasts a long-term earnings growth rate of 12.4%. The Zacks Consensus Estimate for EADSY’s third-quarter sales is pegged at $21.1 billion.
Leidos (LDOS - Free Report) ) has an Earnings ESP of +1.19% and a Zacks Rank #3. LDOS delivered a four-quarter average earnings surprise of 2.01%.
The Zacks Consensus Estimate for Leidos’ fourth-quarter sales is pegged at $3.61 billion, suggesting a growth rate of 3.4% from the prior-year reported figure. The Zacks Consensus Estimate for Leidos’ fourth-quarter earnings implies an improvement of 3.2% from the prior-year reported figure.
Virgin Galactic Holdings (SPCE - Free Report) has an Earnings ESP of +1.22% and a Zacks Rank #3. SPCE delivered a four-quarter average negative earnings surprise of 9.01%.
The Zacks Consensus Estimate for Virgin Galactic’s fourth-quarter sales suggests a growth rate of 271.4% from the prior-year reported figure.
Image: Bigstock
Will Segmental Revenues Aid L3Harris (LHX) Q4 Earnings?
L3Harris Technologies, Inc. (LHX - Free Report) is slated to report its fourth-quarter and full-year 2022 results on Jan 26 after market close.
L3Harris Technologies has a four-quarter earnings surprise of 0.46%, on average. Strong revenue performance across all its business segments may have contributed to its overall fourth-quarter top line. However, supply-chain headwinds and net higher inflationary input costs may have dented the bottom line.
Integrated Mission Systems – a Key Catalyst
Increased revenues from the newly awarded armed overwatch program and commercial aviation solutions are expected to have benefited this segment’s revenues in the fourth quarter of 2022.
The Zacks Consensus Estimate for Integrated Mission Systems’ fourth-quarter revenues, pegged at $1,706 million, suggests growth of 9.5% from the year-ago quarter’s reported figure.
Space and Airborne Systems – Another Revenue Contributor
An increase in revenues from responsive satellite programs is likely to have boosted revenues from the Space and Airborne Systems segment in the fourth quarter.
The Zacks Consensus Estimate for Space and Airborne Systems’ fourth-quarter revenues, pegged at $1,548 million, suggests an improvement of 20.4% from the year-ago quarter’s reported figure.
Communication Systems to Boost Revenues
Higher volume sales for Tactical Communications are likely to have positively impacted the revenues of the segment in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for Communication Systems’ fourth-quarter revenues is pegged at $1,130 million, implying a growth rate of 11% from the prior-year reported figure.
L3Harris Technologies Inc Price and EPS Surprise
L3Harris Technologies Inc price-eps-surprise | L3Harris Technologies Inc Quote
Fourth-Quarter Estimates
In the fourth quarter of 2022, LHX’s top line is likely to have benefited from an improvement in revenues across all its segments. However, lower deliveries due to volatility in the availability of electronic components might have an adverse impact on the overall top line.
Meanwhile, supply-chain headwinds and net higher inflationary input costs may continue to impact the bottom line in the soon-to-be-reported quarter. The Zacks Consensus Estimate for fourth-quarter sales is pegged at $4.33 billion, indicating a decline of 0.4% from the prior-year reported figure.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $3.21 per share, suggesting a decrease of 2.7% from the prior-year reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for L3Harris Technologies this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
L3Harris Technologies has an Earnings ESP of -1.38% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are three defense players you may want to consider as these have the right combination of elements to post an earnings beat this season:
Airbus Group (EADSY - Free Report) has an Earnings ESP of +6.25% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Airbus boasts a long-term earnings growth rate of 12.4%. The Zacks Consensus Estimate for EADSY’s third-quarter sales is pegged at $21.1 billion.
Leidos (LDOS - Free Report) ) has an Earnings ESP of +1.19% and a Zacks Rank #3. LDOS delivered a four-quarter average earnings surprise of 2.01%.
The Zacks Consensus Estimate for Leidos’ fourth-quarter sales is pegged at $3.61 billion, suggesting a growth rate of 3.4% from the prior-year reported figure. The Zacks Consensus Estimate for Leidos’ fourth-quarter earnings implies an improvement of 3.2% from the prior-year reported figure.
Virgin Galactic Holdings (SPCE - Free Report) has an Earnings ESP of +1.22% and a Zacks Rank #3. SPCE delivered a four-quarter average negative earnings surprise of 9.01%.
The Zacks Consensus Estimate for Virgin Galactic’s fourth-quarter sales suggests a growth rate of 271.4% from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.