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Will Segmental Performance Aid L3Harris (LHX) Q3 Earnings?

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L3Harris Technologies, Inc. (LHX - Free Report) is slated to report third-quarter 2022 results on Oct 27 after market close.   

L3Harris Technologies has a four-quarter earnings surprise of 2.16%, on average. Its third-quarter top line is likely to have benefited from growth across all its segments, partially weighed down by the impacts of supply-chain challenges.

Integrated Mission Systems – a Key Catalyst

The solid aircraft subcontractor progress for a U.S. Government customer, along with the increasing demand for commercial aviation solutions, is expected to have contributed to this segment’s revenues in the third quarter of 2022.

The Zacks Consensus Estimate for Integrated Mission Systems’ third-quarter revenues, pegged at $1,805 million, suggests an improvement of 35.1% 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 third quarter.

The Zacks Consensus Estimate for Space and Airborne Systems’ third-quarter revenues, pegged at $1,529 million, suggests an improvement of 19.1% from the year-ago quarter’s reported figure.

Communication Systems to Boost Revenues

The positive impact of public safety may have contributed to the Communication Systems segment in the soon-to-be-reported quarter.

The Zacks Consensus Estimate for Communication Systems’ third-quarter revenues is pegged at $1,293.1 million.

Third-Quarter Estimates

The strong revenue performance of L3Harris Technologies’ segments makes us optimistic about the overall top line of the company in the third quarter of 2022. This is likely to have contributed to the company’s bottom line in the soon-to-be-reported quarter.

However, high inflation and supply-chain constraints may have partially dampened the bottom line in the soon-to-be-reported quarter.

The Zacks Consensus Estimate for third-quarter sales is pegged at $4.43 billion, indicating an increase of 4.7% from the prior-year reported figure.

The Zacks Consensus Estimate for third-quarter earnings is pegged at $3.45 per share, indicating an increase of 7.5% from the prior-year reported figure.

L3Harris Technologies Inc Price and EPS Surprise

L3Harris Technologies Inc Price and EPS Surprise

L3Harris Technologies Inc price-eps-surprise | L3Harris Technologies Inc Quote

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 -0.99% 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 two defense players you may want to consider as they have the right combination of elements to post an earnings beat this season:

Spirit Aerosystems (SPR - Free Report) has an Earnings ESP of +47.19% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Spirit Aerosystems has a four-quarter average negative earnings surprise of 100.31%. The Zacks Consensus Estimate for SPR’s third-quarter loss of 39 cents indicates an improvement from the prior-year reported loss figure.

Transdigm Group (TDG - Free Report) has an Earnings ESP of +1.51% and a Zacks Rank #3. Transdigm delivered a four-quarter average earnings surprise of 5.95%.

The Zacks Consensus Estimate for TDG’s third-quarter sales and earnings is pegged at $1.51 billion and $5.11 per share, respectively.

Upcoming Defense Release

General Dynamics Corporation (GD - Free Report) is set to release third-quarter 2022 results on Oct 26. General Dynamics delivered an earnings surprise of 2.47% in the last four quarters, on average.

The Zacks Consensus Estimate for General Dynamics’ third-quarter revenues is pegged at $9.92 billion, suggesting growth of 3.7% from the year-ago quarter. The Zacks Consensus Estimate for third-quarter earnings is pegged at $3.16 per share, indicating growth of 2.9% from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar

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