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Will Segmental Performance Hurt L3Harris (LHX) Q2 Earnings?
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L3Harris Technologies, Inc. (LHX - Free Report) is slated to report second-quarter 2022 results on Jul 28 after market close.
L3Harris Technologies has a four-quarter earnings surprise of 2.32%, on average. Its second-quarter top line is likely to have benefited from the growth in Integrated Mission Systems and strength in Space and Airborne systems, weighed downby the impacts of supply-chain challenges.
Integrated Mission Systems’ Revenues Expected to Remain Strong
The improved commercial air traffic observed in the past few months is expected to have benefited revenues from its commercial aviation solutions business in the second quarter. Also, higher volumes from Electro Optical programs must have favorably contributed to this segment’s revenues in the soon-to-be-reported quarter. However, the lower aircraft procurement and delivery volume in intelligence, surveillance and reconnaissance is expected to have partially dented revenues in the second quarter.
The Zacks Consensus Estimate for Integrated Mission Systems’ second-quarter revenues, pegged at $1,765 million, suggests an improvement of 18.1% 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 second quarter. However, this might have been partially offset by the transition toward modernization programs within the airborne business.
The Zacks Consensus Estimate for Space and Airborne Systems’ second-quarter revenues, pegged at $1,492 million, suggests an improvement of 15.9% from the year-ago quarter’s reported figure.
Communication Systems Remains Gloomy
The negative impact of supply chain-related constraints arising from electronic component shortages might have dampened tactical communications, integrated vision solution and public safety communication systems’ revenues, thus impacting the overall revenues of the Communication Systems segment in the soon-to-be-reported quarter. Additionally, lower volumes from legacy platforms are likely to have contributed unfavorably to Communication Systems’ revenues in the second quarter.
With the mixed revenue performance of L3Harris Technologies’ segments, one might remain skeptical about the overall top line of the company, mainly due to airborne program transitions, award timings and supply-chain constraints that LHX might have continued to face in the second quarter.
The Zacks Consensus Estimate for second-quarter sales is pegged at $4.23 billion, indicating a decrease of 9.3% from the prior-year reported figure.
The overall revenue performance in the soon-to-be-reported quarter is likely to have dampened the bottom line of the company in the second quarter.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $3.16 per share, indicating a decrease of 3.1% from the prior-year reported figure.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for L3Harris Technologies this time. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
L3Harris Technologies has an Earnings ESP of +0.95% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are three defense players you may want to consider as they also have the right combination of elements to post an earnings beat this season:
Spire delivered an earnings surprise of 7.7% in the last reported quarter. The Zacks Consensus Estimate for SPIR’s second-quarter sales is pegged at $18.93 billion.
CAE (CAE - Free Report) has an Earnings ESP of +2.27% and a Zacks Rank #3. CAE delivered a four-quarter average earnings surprise of 7.67%.
The long-term earnings growth rate of CAE is pegged at 16.9%. The Zacks Consensus Estimate for CAE’s second-quarter earnings is pegged at 18 cents per share, suggesting growth of 20% from the prior-year reported figure.
Curtiss-Wright(CW - Free Report) has an Earnings ESP of +0.90% and a Zacks Rank #3. CW has a four-quarter average earnings surprise of 4.54%.
The Zacks Consensus Estimate for Curtiss-Wright’s second-quarter earnings is pegged at $1.68 per share, indicating growth of 7.7% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for CW’s second-quarter sales is pegged at $604.9, suggesting a decline of 2.7% from the prior-year quarter’s reported figure.
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Will Segmental Performance Hurt L3Harris (LHX) Q2 Earnings?
L3Harris Technologies, Inc. (LHX - Free Report) is slated to report second-quarter 2022 results on Jul 28 after market close.
L3Harris Technologies has a four-quarter earnings surprise of 2.32%, on average. Its second-quarter top line is likely to have benefited from the growth in Integrated Mission Systems and strength in Space and Airborne systems, weighed downby the impacts of supply-chain challenges.
Integrated Mission Systems’ Revenues Expected to Remain Strong
The improved commercial air traffic observed in the past few months is expected to have benefited revenues from its commercial aviation solutions business in the second quarter. Also, higher volumes from Electro Optical programs must have favorably contributed to this segment’s revenues in the soon-to-be-reported quarter. However, the lower aircraft procurement and delivery volume in intelligence, surveillance and reconnaissance is expected to have partially dented revenues in the second quarter.
The Zacks Consensus Estimate for Integrated Mission Systems’ second-quarter revenues, pegged at $1,765 million, suggests an improvement of 18.1% 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 second quarter. However, this might have been partially offset by the transition toward modernization programs within the airborne business.
The Zacks Consensus Estimate for Space and Airborne Systems’ second-quarter revenues, pegged at $1,492 million, suggests an improvement of 15.9% from the year-ago quarter’s reported figure.
Communication Systems Remains Gloomy
The negative impact of supply chain-related constraints arising from electronic component shortages might have dampened tactical communications, integrated vision solution and public safety communication systems’ revenues, thus impacting the overall revenues of the Communication Systems segment in the soon-to-be-reported quarter. Additionally, lower volumes from legacy platforms are likely to have contributed unfavorably to Communication Systems’ revenues in the second quarter.
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Second-Quarter Estimates
With the mixed revenue performance of L3Harris Technologies’ segments, one might remain skeptical about the overall top line of the company, mainly due to airborne program transitions, award timings and supply-chain constraints that LHX might have continued to face in the second quarter.
The Zacks Consensus Estimate for second-quarter sales is pegged at $4.23 billion, indicating a decrease of 9.3% from the prior-year reported figure.
The overall revenue performance in the soon-to-be-reported quarter is likely to have dampened the bottom line of the company in the second quarter.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $3.16 per share, indicating a decrease of 3.1% from the prior-year reported figure.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for L3Harris Technologies this time. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
L3Harris Technologies has an Earnings ESP of +0.95% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are three defense players you may want to consider as they also have the right combination of elements to post an earnings beat this season:
Spire Global, Inc. (SPIR - Free Report) has an Earnings ESP of +9.43% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Spire delivered an earnings surprise of 7.7% in the last reported quarter. The Zacks Consensus Estimate for SPIR’s second-quarter sales is pegged at $18.93 billion.
CAE (CAE - Free Report) has an Earnings ESP of +2.27% and a Zacks Rank #3. CAE delivered a four-quarter average earnings surprise of 7.67%.
The long-term earnings growth rate of CAE is pegged at 16.9%. The Zacks Consensus Estimate for CAE’s second-quarter earnings is pegged at 18 cents per share, suggesting growth of 20% from the prior-year reported figure.
Curtiss-Wright(CW - Free Report) has an Earnings ESP of +0.90% and a Zacks Rank #3. CW has a four-quarter average earnings surprise of 4.54%.
The Zacks Consensus Estimate for Curtiss-Wright’s second-quarter earnings is pegged at $1.68 per share, indicating growth of 7.7% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for CW’s second-quarter sales is pegged at $604.9, suggesting a decline of 2.7% from the prior-year quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.