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With a market cap of $42.9 billion, L3Harris Technologies, Inc. (LHX) is a global leader in aerospace and defense technology. The company is headquartered in Florida and offers comprehensive solutions that fulfill critical customer requirements for both defense and commercial sectors, spanning space, air, land, sea, and cyber domains. The company is expected to announce its fiscal Q2 earnings results after the market close on Thursday, Jul. 25.
Ahead of this event, analysts expect LHX to report a profit of $3.16 per share, up 6.4% from $2.97 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in each of the past four quarters.
In the last reported quarter, L3Harris Technologies achieved an EPS of $3.06, marking a 7% year over year increase and surpassing the consensus estimate by 5.9%. This growth was fueled by organic expansion and the successful acquisition of Aerojet Rocketdyne. Besides, its revenue for the quarter reached $5.2 billion, exceeding the consensus estimate of $5.1 billion and marking a 17% increase from the same quarter last year.
Looking ahead, analysts expect L3Harris Technologies to report an EPS of $12.96 in fiscal 2024, up 4.9% from $12.36 in fiscal year 2023. Its fiscal 2025 EPS is projected to rise 10% annually to $14.26.
While LHX stock has rallied by 7.7% on a YTD basis, lagging behind the S&P 500 Index's ($SPX) 17.3% gain in 2024 but outpacing the S&P 500 Industrial Sector SPDR's (XLI) 6% returns over the same period.
L3Harris Technologies has strengthened its position with products in over 75% of all U.S. missile programs, reflecting robust fundamentals. Recent significant orders include a $256 million contract from the Army for night-vision binoculars, along with contracts for Army radios, missionized business jets, and rocket motors for the Army's guided multiple-launch rocket system. L3Harris' order backlog currently totals $33 billion, highlighting sustained demand and growth prospects.
However, the stock dipped marginally following the Q1 earnings release on Apr. 25. LHX’s operational efficiencies and improved program performance enhanced adjusted segment operating margins in Q1, supporting profitability. However, the company's overall operating margin was impacted by higher implementation costs and amortization of intangible assets related to recent acquisitions.
Analysts' consensus opinion on L3Harris Technologies stock is cautiously optimistic overall, with a "Moderate Buy" rating. Out of 20 analysts covering the stock, 12 recommend a "Strong Buy," two suggest a "Moderate Buy" rating, five give a "Hold" rating, and the remaining one analyst advises a “Strong Sell.”
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
