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L3Harris Technologies, Inc. (LHX - Free Report) reported fourth-quarter 2024 adjusted earnings (from continuing operations) of $3.47 per share, which beat the Zacks Consensus Estimate of $3.43 by 1.2%. The bottom line also increased 3.6% from the year-ago quarter’s $3.35.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Excluding one-time items, the company reported GAAP earnings of $2.37 per share, up from 83 cents in the prior-year period.
The year-over-year improvement in the bottom line can be attributed to higher revenues and operating income.
LHX reported 2024 adjusted earnings of $13.10 per share, which were higher than the year-ago figure of $12.36. The full-year bottom-line figure beat the Zacks Consensus Estimate of $13.07.
LHX’s Total Revenues
L3Harris’ revenues totaled $5.52 billion, which beat the Zacks Consensus Estimate of $5.51 billion by 0.3%. The top line also rose 3.4% from the year-ago quarter’s $5.34 billion.
The year-over-year revenue increase was driven by solid demand for resilient communication products and night vision devices, higher aircraft missionization volume, increased volume for advanced electronics for space and munitions programs, and higher volume in LHX’s Commercial Aviation Solutions (CAS) business.
The company reported revenues of $21.33 billion in 2024, which were higher than $19.42 billion in 2023. The full-year top-line figure also beat the Zacks Consensus Estimate of $21.31 billion.
L3Harris Technologies Inc Price, Consensus and EPS Surprise
Integrated Mission Systems: The segment recorded net revenues of $1.77 billion, indicating year-over-year growth of 9%. The improvement was driven by higher aircraft missionization volumes, increased advanced electronics demand for space and munitions programs and higher volumes from the CAS business.
This segment recorded an operating income of $238 million against an operating loss of $75 million in the third quarter of 2023. The adjusted segment operating margin expanded 150 basis points (bps) to 13.4%, driven by the improved program performance.
Space and Airborne Systems: Net revenues from the segment were $1.73 billion, indicating a year-over-year decline of 4%. The year-over-year revenue deceleration was due to the adverse impact of the divestiture of the antenna business in the second quarter and lower organic revenues.
The segment’s operating income declined to $186 million from $196 million reported in the year-ago quarter. The adjusted segment operating margin expanded 20 bps to 10.8%, driven by LHX NeXt cost savings and monetization of certain legacy end-of-life assets as well as growth in LHX’s FAA safety of flight networks business.
Communication Systems: Net revenues from this segment increased 5.4% to $1.44 billion. This increase was driven by the robust demand for its resilient communication equipment, related waveforms and night vision devices.
The unit’s operating income declined to $326 million from $356 million reported in the year-ago quarter. The adjusted segment operating margin contracted 170 bps to 24.4%, due to a higher mix of domestic radios.
Aerojet Rocketdyne: This segment reported revenues of $628 million, which improved 5.2% year over year. This rise was driven by increased production volume across key missile programs.
The unit’s operating income of $72 million improved from $66 million in the third quarter of 2023. The operating margin expanded 40 bps to 11.5%, driven by increased production volumes and strong program execution.
Financial Position of LHX
As of Jan. 3, 2025, L3Harris had $615 million in cash and cash equivalents compared with $560 million as of Dec. 29, 2023.
The long-term debt as of the same date was $11.08 billion compared with $11.16 billion as of Dec. 29, 2023.
The net cash flow from operating activities amounted to $2.56 billion during 2024 compared with $2.10 billion in the prior-year period.
At the end of 2024, L3Harris’ adjusted free cash flow was $2.32 billion compared with $2.03 billion at the end of 2023.
2025 Guidance of LHX
L3Harris issued its financial guidance for 2025.
It expects to generate revenues in the range of $21.80-$22.20 billion. The Zacks Consensus Estimate for 2025 revenues is pegged at $21.70 billion, which lies lower than the company’s guided range.
L3Harris expects its adjusted earnings to be in the range of $10.55-$10.85 per share, lower than the prior guidance of $13.70-$14.00. The consensus estimate for adjusted earnings is pegged at $14.19 per share, which lies above the company’s new guided range.
LHX expects its adjusted segment operating margin to be in the mid-to- high 15% range. It expects adjusted free cash flow to be in the range of $2.40-$2.50 billion.
Teledyne Technologies Inc. (TDY - Free Report) reported fourth-quarter 2024 adjusted earnings of $5.52 per share, which surpassed the Zacks Consensus Estimate of $5.23 by 5.5%. Total sales were $1.50 billion, which beat the consensus estimate of $1.45 billion by 3.7%.
Textron Inc. (TXT - Free Report) reported fourth-quarter 2024 adjusted earnings of $1.34 per share, which beat the Zacks Consensus Estimate of $1.25 by 7.2%. The company reported total revenues of $3.61 billion, which missed the consensus estimate of $3.74 billion by 3.5%.
Hexcel Corporation (HXL - Free Report) reported fourth-quarter 2024 adjusted earnings of 52 cents per share, which surpassed the Zacks Consensus Estimate of 51 cents by 2%. The company’s net sales totaled $473.8 million, which beat the consensus estimate of $471 million by 0.6%.
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L3Harris Q4 Earnings Surpass Estimates, Revenues Increase Y/Y
L3Harris Technologies, Inc. (LHX - Free Report) reported fourth-quarter 2024 adjusted earnings (from continuing operations) of $3.47 per share, which beat the Zacks Consensus Estimate of $3.43 by 1.2%. The bottom line also increased 3.6% from the year-ago quarter’s $3.35.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Excluding one-time items, the company reported GAAP earnings of $2.37 per share, up from 83 cents in the prior-year period.
The year-over-year improvement in the bottom line can be attributed to higher revenues and operating income.
LHX reported 2024 adjusted earnings of $13.10 per share, which were higher than the year-ago figure of $12.36. The full-year bottom-line figure beat the Zacks Consensus Estimate of $13.07.
LHX’s Total Revenues
L3Harris’ revenues totaled $5.52 billion, which beat the Zacks Consensus Estimate of $5.51 billion by 0.3%. The top line also rose 3.4% from the year-ago quarter’s $5.34 billion.
The year-over-year revenue increase was driven by solid demand for resilient communication products and night vision devices, higher aircraft missionization volume, increased volume for advanced electronics for space and munitions programs, and higher volume in LHX’s Commercial Aviation Solutions (CAS) business.
The company reported revenues of $21.33 billion in 2024, which were higher than $19.42 billion in 2023. The full-year top-line figure also beat the Zacks Consensus Estimate of $21.31 billion.
L3Harris Technologies Inc Price, Consensus and EPS Surprise
L3Harris Technologies Inc price-consensus-eps-surprise-chart | L3Harris Technologies Inc Quote
LHX’s Segmental Performance
Integrated Mission Systems: The segment recorded net revenues of $1.77 billion, indicating year-over-year growth of 9%. The improvement was driven by higher aircraft missionization volumes, increased advanced electronics demand for space and munitions programs and higher volumes from the CAS business.
This segment recorded an operating income of $238 million against an operating loss of $75 million in the third quarter of 2023. The adjusted segment operating margin expanded 150 basis points (bps) to 13.4%, driven by the improved program performance.
Space and Airborne Systems: Net revenues from the segment were $1.73 billion, indicating a year-over-year decline of 4%. The year-over-year revenue deceleration was due to the adverse impact of the divestiture of the antenna business in the second quarter and lower organic revenues.
The segment’s operating income declined to $186 million from $196 million reported in the year-ago quarter. The adjusted segment operating margin expanded 20 bps to 10.8%, driven by LHX NeXt cost savings and monetization of certain legacy end-of-life assets as well as growth in LHX’s FAA safety of flight networks business.
Communication Systems: Net revenues from this segment increased 5.4% to $1.44 billion. This increase was driven by the robust demand for its resilient communication equipment, related waveforms and night vision devices.
The unit’s operating income declined to $326 million from $356 million reported in the year-ago quarter. The adjusted segment operating margin contracted 170 bps to 24.4%, due to a higher mix of domestic radios.
Aerojet Rocketdyne: This segment reported revenues of $628 million, which improved 5.2% year over year. This rise was driven by increased production volume across key missile programs.
The unit’s operating income of $72 million improved from $66 million in the third quarter of 2023. The operating margin expanded 40 bps to 11.5%, driven by increased production volumes and strong program execution.
Financial Position of LHX
As of Jan. 3, 2025, L3Harris had $615 million in cash and cash equivalents compared with $560 million as of Dec. 29, 2023.
The long-term debt as of the same date was $11.08 billion compared with $11.16 billion as of Dec. 29, 2023.
The net cash flow from operating activities amounted to $2.56 billion during 2024 compared with $2.10 billion in the prior-year period.
At the end of 2024, L3Harris’ adjusted free cash flow was $2.32 billion compared with $2.03 billion at the end of 2023.
2025 Guidance of LHX
L3Harris issued its financial guidance for 2025.
It expects to generate revenues in the range of $21.80-$22.20 billion. The Zacks Consensus Estimate for 2025 revenues is pegged at $21.70 billion, which lies lower than the company’s guided range.
L3Harris expects its adjusted earnings to be in the range of $10.55-$10.85 per share, lower than the prior guidance of $13.70-$14.00. The consensus estimate for adjusted earnings is pegged at $14.19 per share, which lies above the company’s new guided range.
LHX expects its adjusted segment operating margin to be in the mid-to- high 15% range. It expects adjusted free cash flow to be in the range of $2.40-$2.50 billion.
LHX’s Zacks Rank
L3Harris currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Teledyne Technologies Inc. (TDY - Free Report) reported fourth-quarter 2024 adjusted earnings of $5.52 per share, which surpassed the Zacks Consensus Estimate of $5.23 by 5.5%. Total sales were $1.50 billion, which beat the consensus estimate of $1.45 billion by 3.7%.
Textron Inc. (TXT - Free Report) reported fourth-quarter 2024 adjusted earnings of $1.34 per share, which beat the Zacks Consensus Estimate of $1.25 by 7.2%. The company reported total revenues of $3.61 billion, which missed the consensus estimate of $3.74 billion by 3.5%.
Hexcel Corporation (HXL - Free Report) reported fourth-quarter 2024 adjusted earnings of 52 cents per share, which surpassed the Zacks Consensus Estimate of 51 cents by 2%. The company’s net sales totaled $473.8 million, which beat the consensus estimate of $471 million by 0.6%.