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Will Sales Volume Benefit L3Harris (LHX) in Q2 Earnings?
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L3Harris Technologies, Inc. (LHX - Free Report) is slated to report second-quarter 2024 results on Jul 25 after market close.
L3Harris has a four-quarter average earnings surprise of 3.09%. The strong top-line performance across most of the company’s business segments, along with positive synergies from the Aerojet Rocketdyne purchase, is likely to have boosted its earnings amid the adverse effects of high interest expenses.
IMS Unit to Reflect Dismal Performance
Lower Intelligence, Surveillance and Reconnaissance aircraft procurement activity may have adversely impacted the Integrated Mission Systems (“IMS”) segment’s top-line performance.
The Zacks Consensus Estimate for IMS’ second-quarter revenues is currently pegged at $1,664.4 million, which indicates a decline of 4.1% from the year-ago quarter’s reported figure.
Strong sales growth volume from Space Systems, as well as Intel & Cyber programs, is likely to have added impetus to its Space and Airborne Systems (“SAS”) unit’s revenues.
The Zacks Consensus Estimate for the SAS segment’s revenues is pegged at $1,744.2 million, which indicates an improvement of 1.7% from the year-ago quarter’s reported number.
Higher sales volume from the Tactical Communication business, as well as that of Broadband Communications, particularly driven by positive synergies from the acquisition of Tactical Data Links, is expected to boost the Communication Systems unit’s top-line performance.
The Zacks Consensus Estimate for this unit’s revenues is pegged at $1,337.2 million, which implies growth of 3.7% from the prior-year quarter’s reported actuals.
Q2 Estimates
With the Space and Airborne Systems and the Communication Systems accounting for almost 62% of LHX’s total revenues (as of 2023-end), the solid top-line performance from these segments may have outweighed the sales decline of the IMS unit. This 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 impetus to LHX’s second-quarter top line.
The Zacks Consensus Estimate for second-quarter sales is pegged at $5.30 billion, which indicates growth of 13% from the prior-year quarter’s reported figure.
Solid sales growth expectations may have benefited LHX’s bottom-line performance. Moreover, improved operating margins, driven by operational improvements, favorable program performance and the company’s cost reduction initiatives, are likely to have benefited its earnings. In particular, operational efficiencies derived at its SAS unit following the launch of five L3Harris missile-tracking satellites in the second quarter must have boosted LHX’s quarterly bottom line.
However, higher interest expenses might have some adverse impact on its overall earnings growth.
The consensus estimate for second-quarter earnings is pegged at $3.18 per share, which implies an increase of 7.1% from the year-ago quarter’s level.
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.
Earnings ESP: L3Harris has an Earnings ESP of -0.57%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here, we have mentioned the following players from the same industry that have the right combination of elements to beat on earnings in the upcoming releases.
Northrop Grumman (NOC - Free Report) is slated to report its second-quarter 2024 results on Jul 25 before market open. It has an Earnings ESP of +1.09% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for NOC’s second-quarter earnings stands at $5.95 per share, which suggests an 11.4% improvement from the second-quarter 2023 reported figure. The Zacks Consensus Estimate for second-quarter sales is pegged at $10.07 billion, which implies a 5.2% increase from that reported in the prior-year quarter.
Leidos Holdings, Inc. (LDOS - Free Report) is slated to report its second-quarter 2024 results on Jul 30 before market open. It has an Earnings ESP of +1.33% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for LDOS’ second-quarter earnings stands at $2.26 per share, which suggests a 25.6% improvement from the second-quarter 2023 reported figure. The Zacks Consensus Estimate for second-quarter sales is pegged at $4.01 billion, which implies a 4.5% increase from that reported in the prior-year quarter.
Huntington Ingalls Industries (HII - Free Report) is expected to report its second-quarter 2024 results on Aug 1 before market open. It has an Earnings ESP of +0.39% and carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for HII’s second-quarter earnings stands at $3.59 per share, which calls for a 9.8% improvement from the second-quarter 2023 reported figure. The Zacks Consensus Estimate for second-quarter sales is pegged at $2.84 billion, which implies a 1.9% rise from that reported in the prior-year quarter.
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Will Sales Volume Benefit L3Harris (LHX) in Q2 Earnings?
L3Harris Technologies, Inc. (LHX - Free Report) is slated to report second-quarter 2024 results on Jul 25 after market close.
L3Harris has a four-quarter average earnings surprise of 3.09%. The strong top-line performance across most of the company’s business segments, along with positive synergies from the Aerojet Rocketdyne purchase, is likely to have boosted its earnings amid the adverse effects of high interest expenses.
IMS Unit to Reflect Dismal Performance
Lower Intelligence, Surveillance and Reconnaissance aircraft procurement activity may have adversely impacted the Integrated Mission Systems (“IMS”) segment’s top-line performance.
The Zacks Consensus Estimate for IMS’ second-quarter revenues is currently pegged at $1,664.4 million, which indicates a decline of 4.1% 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 Systems, as well as Intel & Cyber programs, is likely to have added impetus to its Space and Airborne Systems (“SAS”) unit’s revenues.
The Zacks Consensus Estimate for the SAS segment’s revenues is pegged at $1,744.2 million, which indicates an improvement of 1.7% from the year-ago quarter’s reported number.
Higher sales volume from the Tactical Communication business, as well as that of Broadband Communications, particularly driven by positive synergies from the acquisition of Tactical Data Links, is expected to boost the Communication Systems unit’s top-line performance.
The Zacks Consensus Estimate for this unit’s revenues is pegged at $1,337.2 million, which implies growth of 3.7% from the prior-year quarter’s reported actuals.
Q2 Estimates
With the Space and Airborne Systems and the Communication Systems accounting for almost 62% of LHX’s total revenues (as of 2023-end), the solid top-line performance from these segments may have outweighed the sales decline of the IMS unit. This 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 impetus to LHX’s second-quarter top line.
The Zacks Consensus Estimate for second-quarter sales is pegged at $5.30 billion, which indicates growth of 13% from the prior-year quarter’s reported figure.
Solid sales growth expectations may have benefited LHX’s bottom-line performance. Moreover, improved operating margins, driven by operational improvements, favorable program performance and the company’s cost reduction initiatives, are likely to have benefited its earnings. In particular, operational efficiencies derived at its SAS unit following the launch of five L3Harris missile-tracking satellites in the second quarter must have boosted LHX’s quarterly bottom line.
However, higher interest expenses might have some adverse impact on its overall earnings growth.
The consensus estimate for second-quarter earnings is pegged at $3.18 per share, which implies an increase of 7.1% from the year-ago quarter’s level.
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.
Earnings ESP: L3Harris has an Earnings ESP of -0.57%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, LHX carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here, we have mentioned the following players from the same industry that have the right combination of elements to beat on earnings in the upcoming releases.
Northrop Grumman (NOC - Free Report) is slated to report its second-quarter 2024 results on Jul 25 before market open. It has an Earnings ESP of +1.09% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for NOC’s second-quarter earnings stands at $5.95 per share, which suggests an 11.4% improvement from the second-quarter 2023 reported figure. The Zacks Consensus Estimate for second-quarter sales is pegged at $10.07 billion, which implies a 5.2% increase from that reported in the prior-year quarter.
Leidos Holdings, Inc. (LDOS - Free Report) is slated to report its second-quarter 2024 results on Jul 30 before market open. It has an Earnings ESP of +1.33% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for LDOS’ second-quarter earnings stands at $2.26 per share, which suggests a 25.6% improvement from the second-quarter 2023 reported figure. The Zacks Consensus Estimate for second-quarter sales is pegged at $4.01 billion, which implies a 4.5% increase from that reported in the prior-year quarter.
Huntington Ingalls Industries (HII - Free Report) is expected to report its second-quarter 2024 results on Aug 1 before market open. It has an Earnings ESP of +0.39% and carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for HII’s second-quarter earnings stands at $3.59 per share, which calls for a 9.8% improvement from the second-quarter 2023 reported figure. The Zacks Consensus Estimate for second-quarter sales is pegged at $2.84 billion, which implies a 1.9% rise from that reported in the prior-year quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.