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Will Segmental Sales Bolster L3Harris Technologies' Q1 Earnings?
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L3Harris Technologies, Inc. (LHX - Free Report) is slated to report first-quarter 2025 results on April 24, 2025, before market open.
L3Harris Technologies has a four-quarter average earnings surprise of 2.77%. The strong top-line performance across three of the company’s four business segments is likely to have boosted its earnings, amid low non-cash non-service FAS pension income.
LHX’s IMS Unit: A Mixed Bag
Higher sales arising from increased demand for the company’s defense electronics and airborne electro-optical sensors, as well as higher aircraft missionization volume, are expected to have boosted the Integrated Mission Systems (IMS) segment’s quarterly top-line performance.
The Zacks Consensus Estimate for IMS’ first-quarter revenues is currently pegged at $1,692 million, which indicates a rise of 1.4% from the year-ago quarter’s figure.
Higher demand for LHX’s resilient communication equipment, related waveforms and night vision devices, along with higher sales volume from Broadband Communications, is expected to have boosted the Communication Systems unit’s top-line performance.
The Zacks Consensus Estimate for this unit’s revenues is pegged at $1,309 million, which implies growth of 1.2% from the prior-year quarter’s figure.
Aerojet Rocketdyne’s Performance
Positive synergies from the acquisition of the Aerojet Rocketdyne (“AR”), along with solid demand for rocket motor production, are likely to have boosted the AR segment’s revenues in the first quarter.
The Zacks Consensus Estimate for this unit’s revenues is pegged at $561.7 million, which implies growth of 3.6% from the prior-year quarter’s reported figure.
Space and Airborne Systems’ Performance
Strong sales growth from Intel & Cyber programs and increased volume are likely to have added impetus to the company’s Space and Airborne Systems (SAS) unit’s revenues.
However, the impact of the divestiture of this unit’s antenna business in the second quarter of 2024, lower F-35-related volumes and a few challenges from classified development programs in its space business are likely to have adversely affected the SAS segment’s top-line performance.
The Zacks Consensus Estimate for the SAS segment’s revenues is pegged at $1,719.4 million, which indicates a decline of 1.8% from the year-ago quarter’s number.
Q1 Estimates for LHX Stock
With three of its four segments reflecting solid growth expectations for revenues, LHX is expected to report notable growth in its top line.
The Zacks Consensus Estimate for LHX’s first-quarter sales is pegged at $5.26 billion, which indicates growth of 0.9% from the prior-year quarter’s reported figure.
Solid sales growth expectations are expected to 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. However, a lower non-cash non-service FAS pension income expected in the first quarter is likely to have adversely impacted LHX’s bottom-line performance.
The consensus estimate for earnings is pegged at $2.34 per share, which implies a decline of 23.5% from the year-ago quarter’s level. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
What the Zacks Model Unveils for LHX Stock
Our proven model does not conclusively predict 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, which is not the case here, as you will see below.
LHX’s Earnings ESP: L3Harris has an Earnings ESP of -1.77%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Below, we have mentioned a few players from the same industry that have the right combination of elements to beat on earnings in the upcoming releases:
The Boeing Company (BA - Free Report) is set to report first-quarter 2025 earnings on April 23, 2025, before market open. It has an Earnings ESP of +13.08% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for BA’s loss is pegged at $1.54 per share. The consensus estimate for its sales is pegged at $19.29 billion, indicating year-over-year growth of 16.4%.
Embraer (ERJ - Free Report) is set to report its first-quarter 2025 results soon. It has an Earnings ESP of +53.57% and a Zacks Rank of 1 at present.
The Zacks Consensus Estimate for ERJ’s earnings is pegged at 28 cents per share. The consensus estimate for its sales is pegged at $1.12 billion, indicating year-over-year growth of 24.7%.
General Dynamics Corporation (GD - Free Report) is set to report first-quarter 2025 results on April 23, 2025, before market open. It has an Earnings ESP of +0.22% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for GD’s earnings is pegged at $3.47 per share, indicating year-over-year growth of 20.5%. The consensus estimate for its sales is pegged at $11.94 billion, indicating year-over-year growth of 11.3%.
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Will Segmental Sales Bolster L3Harris Technologies' Q1 Earnings?
L3Harris Technologies, Inc. (LHX - Free Report) is slated to report first-quarter 2025 results on April 24, 2025, before market open.
L3Harris Technologies has a four-quarter average earnings surprise of 2.77%. The strong top-line performance across three of the company’s four business segments is likely to have boosted its earnings, amid low non-cash non-service FAS pension income.
LHX’s IMS Unit: A Mixed Bag
Higher sales arising from increased demand for the company’s defense electronics and airborne electro-optical sensors, as well as higher aircraft missionization volume, are expected to have boosted the Integrated Mission Systems (IMS) segment’s quarterly top-line performance.
The Zacks Consensus Estimate for IMS’ first-quarter revenues is currently pegged at $1,692 million, which indicates a rise of 1.4% from the year-ago quarter’s figure.
L3Harris Technologies Inc Price and EPS Surprise
L3Harris Technologies Inc price-eps-surprise | L3Harris Technologies Inc Quote
LHX’s Communication Systems to Boost Revenues
Higher demand for LHX’s resilient communication equipment, related waveforms and night vision devices, along with higher sales volume from Broadband Communications, is expected to have boosted the Communication Systems unit’s top-line performance.
The Zacks Consensus Estimate for this unit’s revenues is pegged at $1,309 million, which implies growth of 1.2% from the prior-year quarter’s figure.
Aerojet Rocketdyne’s Performance
Positive synergies from the acquisition of the Aerojet Rocketdyne (“AR”), along with solid demand for rocket motor production, are likely to have boosted the AR segment’s revenues in the first quarter.
The Zacks Consensus Estimate for this unit’s revenues is pegged at $561.7 million, which implies growth of 3.6% from the prior-year quarter’s reported figure.
Space and Airborne Systems’ Performance
Strong sales growth from Intel & Cyber programs and increased volume are likely to have added impetus to the company’s Space and Airborne Systems (SAS) unit’s revenues.
However, the impact of the divestiture of this unit’s antenna business in the second quarter of 2024, lower F-35-related volumes and a few challenges from classified development programs in its space business are likely to have adversely affected the SAS segment’s top-line performance.
The Zacks Consensus Estimate for the SAS segment’s revenues is pegged at $1,719.4 million, which indicates a decline of 1.8% from the year-ago quarter’s number.
Q1 Estimates for LHX Stock
With three of its four segments reflecting solid growth expectations for revenues, LHX is expected to report notable growth in its top line.
The Zacks Consensus Estimate for LHX’s first-quarter sales is pegged at $5.26 billion, which indicates growth of 0.9% from the prior-year quarter’s reported figure.
Solid sales growth expectations are expected to 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. However, a lower non-cash non-service FAS pension income expected in the first quarter is likely to have adversely impacted LHX’s bottom-line performance.
The consensus estimate for earnings is pegged at $2.34 per share, which implies a decline of 23.5% from the year-ago quarter’s level. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
What the Zacks Model Unveils for LHX Stock
Our proven model does not conclusively predict 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, which is not the case here, as you will see below.
LHX’s Earnings ESP: L3Harris has an Earnings ESP of -1.77%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
LHX’s Zacks Rank: Currently, LHX carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Below, we have mentioned a few players from the same industry that have the right combination of elements to beat on earnings in the upcoming releases:
The Boeing Company (BA - Free Report) is set to report first-quarter 2025 earnings on April 23, 2025, before market open. It has an Earnings ESP of +13.08% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for BA’s loss is pegged at $1.54 per share. The consensus estimate for its sales is pegged at $19.29 billion, indicating year-over-year growth of 16.4%.
Embraer (ERJ - Free Report) is set to report its first-quarter 2025 results soon. It has an Earnings ESP of +53.57% and a Zacks Rank of 1 at present.
The Zacks Consensus Estimate for ERJ’s earnings is pegged at 28 cents per share. The consensus estimate for its sales is pegged at $1.12 billion, indicating year-over-year growth of 24.7%.
General Dynamics Corporation (GD - Free Report) is set to report first-quarter 2025 results on April 23, 2025, before market open. It has an Earnings ESP of +0.22% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for GD’s earnings is pegged at $3.47 per share, indicating year-over-year growth of 20.5%. The consensus estimate for its sales is pegged at $11.94 billion, indicating year-over-year growth of 11.3%.