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Will Solid Sales Volume Benefit L3Harris (LHX) in Q1 Earnings?
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L3Harris Technologies, Inc. (LHX - Free Report) is slated to report first-quarter 2024 results on Apr 25, after market close.
L3Harris has a four-quarter average earnings surprise of 1.53%. The strong top-line performance across most of the company’s business segments is likely to have contributed to its overall first-quarter revenues. Such sales growth, along with positive synergies from the Aerojet Rocketdyne acquisition, must have bolstered its bottom-line performance amid the adverse impacts of increased interest expenses.
Will the Integrated Mission Systems Unit Show Growth?
Higher sales volume from the commercial aviation business is expected to have favored the Integrated Mission Systems (IMS) segment’s quarterly top line.
However, lower revenues from Intelligence, Surveillance and Reconnaissance (ISR) solutions, owing to unfavorable timing of aircraft missionization revenues, as well as operational challenges from some programs, might have adversely impacted the IMS segment’s overall revenue performance.
The Zacks Consensus Estimate for IMS’ first-quarter revenues is currently pegged at $1,650 million, indicating a decline of 2.9% from the year-ago quarter’s reported figure.
Strong sales growth volume from Space, Mission Networks, as well as Intel & Cyber programs is likely to have added an impetus to this unit’s revenues.
The Zacks Consensus Estimate for Space and Airborne Systems’ revenues is pegged at $1,699.2 million, indicating an improvement of 2.7% from the year-ago quarter’s reported number.
Higher sales volume from Tactical Communication equipment, along with positive synergies from the acquisition of Tactical Data Links, is expected to have boosted Communication Systems’ top-line performance.
The Zacks Consensus Estimate for this unit’s revenues is pinned at $1,232.9 million, implying growth of 6% from the prior-year quarter’s reported actuals.
First-Quarter Estimates
With the Space and Airborne Systems and the Communication Systems accounting for almost 76% of LHX’s total revenues, solid top-line performance from these segments might have outweighed the sales decline of the IMS unit.
This, in turn, is likely to have boosted the company’s overall revenues in the quarter to be reported. Also, revenues from the acquisition of Aerojet Rocketdyne must have added to LHX’s first-quarter top line.
The Zacks Consensus Estimate for first-quarter sales is pegged at $5.09 billion, indicating growth of 13.9% from the prior-year quarter’s reported figure.
Solid sales growth expectations must have benefited LHX’s bottom-line performance. Moreover, operational improvements, driven by improved program performance and the company’s cost reduction initiatives, are likely to have benefited the company’s earnings. However, higher interest expenses caused by increased interest rates might have had some adverse impact on its overall earnings growth.
The consensus estimate for first-quarter earnings is pinned at $2.89 per share, implying an increase of 1.1% from the year-ago quarter’s level.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for L3Harris Technologies this time around. 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.
L3Harris has an Earnings ESP of +0.53% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Below are three other defense stocks that have the right combination of elements to post an earnings beat this time around.
Huntington Ingalls delivered a four-quarter average earnings surprise of 20.64%. The consensus estimate for first-quarter earnings is pegged at $3.49 per share, while that for sales is pinned at $2.80 billion.
Leidos Holdings (LDOS - Free Report) is scheduled to release first-quarter results on Apr 30. LDOS has an Earnings ESP of +1.86% and a Zacks Rank #2 at present.
Leidos delivered a four-quarter average earnings surprise of 11.85%. The Zacks Consensus Estimate for LDOS’ first-quarter earnings is pegged at $1.65 per share, while that for sales is pinned at $3.80 billion.
Northrop Grumman (NOC - Free Report) is slated to report first-quarter results on Apr 25. NOC has an Earnings ESP of +1.65% and a Zacks Rank #3 at present.
NOC delivered a four-quarter average earnings surprise of 5.64%. The consensus mark for NOC’s first-quarter earnings is pegged at $5.83 per share, while that for sales is pinned at $9.78 billion.
Image: Bigstock
Will Solid Sales Volume Benefit L3Harris (LHX) in Q1 Earnings?
L3Harris Technologies, Inc. (LHX - Free Report) is slated to report first-quarter 2024 results on Apr 25, after market close.
L3Harris has a four-quarter average earnings surprise of 1.53%. The strong top-line performance across most of the company’s business segments is likely to have contributed to its overall first-quarter revenues. Such sales growth, along with positive synergies from the Aerojet Rocketdyne acquisition, must have bolstered its bottom-line performance amid the adverse impacts of increased interest expenses.
Will the Integrated Mission Systems Unit Show Growth?
Higher sales volume from the commercial aviation business is expected to have favored the Integrated Mission Systems (IMS) segment’s quarterly top line.
However, lower revenues from Intelligence, Surveillance and Reconnaissance (ISR) solutions, owing to unfavorable timing of aircraft missionization revenues, as well as operational challenges from some programs, might have adversely impacted the IMS segment’s overall revenue performance.
The Zacks Consensus Estimate for IMS’ first-quarter revenues is currently pegged at $1,650 million, indicating a decline of 2.9% from the year-ago quarter’s reported figure.
L3Harris Technologies Inc Price and EPS Surprise
L3Harris Technologies Inc price-eps-surprise | L3Harris Technologies Inc Quote
Other Units to Boost Revenues
Strong sales growth volume from Space, Mission Networks, as well as Intel & Cyber programs is likely to have added an impetus to this unit’s revenues.
The Zacks Consensus Estimate for Space and Airborne Systems’ revenues is pegged at $1,699.2 million, indicating an improvement of 2.7% from the year-ago quarter’s reported number.
Higher sales volume from Tactical Communication equipment, along with positive synergies from the acquisition of Tactical Data Links, is expected to have boosted Communication Systems’ top-line performance.
The Zacks Consensus Estimate for this unit’s revenues is pinned at $1,232.9 million, implying growth of 6% from the prior-year quarter’s reported actuals.
First-Quarter Estimates
With the Space and Airborne Systems and the Communication Systems accounting for almost 76% of LHX’s total revenues, solid top-line performance from these segments might have outweighed the sales decline of the IMS unit.
This, in turn, is likely to have boosted the company’s overall revenues in the quarter to be reported. Also, revenues from the acquisition of Aerojet Rocketdyne must have added to LHX’s first-quarter top line.
The Zacks Consensus Estimate for first-quarter sales is pegged at $5.09 billion, indicating growth of 13.9% from the prior-year quarter’s reported figure.
Solid sales growth expectations must have benefited LHX’s bottom-line performance. Moreover, operational improvements, driven by improved program performance and the company’s cost reduction initiatives, are likely to have benefited the company’s earnings. However, higher interest expenses caused by increased interest rates might have had some adverse impact on its overall earnings growth.
The consensus estimate for first-quarter earnings is pinned at $2.89 per share, implying an increase of 1.1% from the year-ago quarter’s level.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for L3Harris Technologies this time around. 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.
L3Harris has an Earnings ESP of +0.53% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Below are three other defense stocks that have the right combination of elements to post an earnings beat this time around.
Huntington Ingalls Industries Inc (HII - Free Report) is slated to report first-quarter results on May 2. HII has an Earnings ESP of +1.39% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Huntington Ingalls delivered a four-quarter average earnings surprise of 20.64%. The consensus estimate for first-quarter earnings is pegged at $3.49 per share, while that for sales is pinned at $2.80 billion.
Leidos Holdings (LDOS - Free Report) is scheduled to release first-quarter results on Apr 30. LDOS has an Earnings ESP of +1.86% and a Zacks Rank #2 at present.
Leidos delivered a four-quarter average earnings surprise of 11.85%. The Zacks Consensus Estimate for LDOS’ first-quarter earnings is pegged at $1.65 per share, while that for sales is pinned at $3.80 billion.
Northrop Grumman (NOC - Free Report) is slated to report first-quarter results on Apr 25. NOC has an Earnings ESP of +1.65% and a Zacks Rank #3 at present.
NOC delivered a four-quarter average earnings surprise of 5.64%. The consensus mark for NOC’s first-quarter earnings is pegged at $5.83 per share, while that for sales is pinned at $9.78 billion.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.