Summary
L3Harris Technologies, Inc. (LHX) reported its third-quarter 2017 financial results, showing a slight decrease in revenue from $1.42 billion in the prior year's quarter to $1.41 billion. However, the company demonstrated improved profitability, with operating income increasing by 11% to $272 million and income from continuing operations up by 15% to $167 million. This translated to a 19% increase in diluted earnings per share (EPS) from continuing operations, rising to $1.38 from $1.16 year-over-year. The company's strategic focus on technology-differentiated, high-margin businesses is evident, supported by the divestiture of non-core segments. The balance sheet remains robust, with total assets and liabilities largely stable quarter-over-quarter, and shareholders' equity showing a modest increase. Cash flow from operations significantly improved, more than doubling to $95 million, indicating strong operational cash generation. The company also continued to return capital to shareholders through share repurchases and dividend payments, with an increase in the quarterly dividend rate.
Financial Highlights
50 data points| Revenue | $1.41B |
| Cost of Revenue | $919.00M |
| Gross Profit | $491.00M |
| Operating Expenses | $268.00M |
| Operating Income | $272.00M |
| Interest Expense | $41.00M |
| Net Income | $165.00M |
| EPS (Basic) | $1.33 |
| EPS (Diluted) | $1.31 |
| Shares Outstanding (Basic) | 119.10M |
| Shares Outstanding (Diluted) | 121.20M |
Key Highlights
- 1Revenue remained stable at $1.41 billion, a slight decrease from $1.42 billion in the prior year's quarter.
- 2Operating income saw a healthy increase of 11% to $272 million, with operating margin improving to 19% from 17%.
- 3Income from continuing operations rose by 15% to $167 million, demonstrating improved profitability.
- 4Diluted earnings per share (EPS) from continuing operations increased significantly by 19% to $1.38 from $1.16.
- 5Net cash provided by operating activities more than doubled, increasing by 121% to $95 million.
- 6The company increased its quarterly cash dividend rate to $0.57 per share, marking its sixteenth consecutive annual increase.
- 7The balance sheet reflects a solid financial position with $2.13 billion in current assets and $2.99 billion in total shareholders' equity.