Summary
L3Harris Technologies, Inc. (LHX) reported a slight decrease in revenue for the quarter ended September 26, 2014, compared to the prior year, with total revenue falling by 3.1% to $1.155 billion. This revenue decline was primarily driven by weaker performance in the Integrated Network Solutions and RF Communications segments, partially offset by growth in the Government Communications Systems segment. Despite the revenue dip, net income attributable to common shareholders remained stable at $125.1 million, resulting in diluted earnings per share of $1.18, consistent with the previous year's quarter. The company also demonstrated a commitment to returning value to shareholders, increasing its quarterly cash dividend and continuing its share repurchase program. Liquidity remains strong, with ample cash and cash equivalents and an available revolving credit facility, although net cash provided by operating activities saw a significant decrease compared to the prior year due to timing of product shipments and inventory build-up.
Financial Highlights
51 data points| Revenue | $1.16B |
| Cost of Revenue | $762.00M |
| Gross Profit | $393.00M |
| Operating Expenses | $195.00M |
| Operating Income | $125.10M |
| Interest Expense | $23.00M |
| Net Income | $125.00M |
| EPS (Basic) | $1.19 |
| EPS (Diluted) | $1.18 |
| Shares Outstanding (Basic) | 104.60M |
| Shares Outstanding (Diluted) | 105.80M |
Key Highlights
- 1Revenue decreased by 3.1% to $1.155 billion for the quarter, primarily due to declines in Integrated Network Solutions and RF Communications segments.
- 2Net income attributable to common shareholders remained stable at $125.1 million, and diluted EPS was $1.18, matching the prior year's quarter.
- 3Government Communications Systems segment showed strong growth, with revenue increasing by 11.9%.
- 4Net cash provided by operating activities decreased significantly by 53.6% to $80.1 million, largely due to working capital changes.
- 5The company increased its quarterly cash dividend by 11.9% to $0.47 per share.
- 6Share repurchases continued, with $111.7 million spent in the current quarter.
- 7The company maintained a strong liquidity position with $449.1 million in cash and cash equivalents and an undrawn $1 billion revolving credit facility.