Summary
L3Harris Technologies, Inc. (LHX) filed its Form 10-Q for the quarterly period ending December 27, 2018. The company reported a significant increase in revenue and net income for both the quarter and the year-to-date period compared to the prior year. Revenue grew by 9% for the quarter and the year-to-date, reaching $1.67 billion and $3.21 billion, respectively. Net income from continuing operations more than doubled year-over-year for the quarter, increasing by 72% to $225 million, and grew by 49% year-to-date to $441 million. Earnings per diluted share also saw substantial improvement. A key development highlighted in the filing is the pending merger with L3 Technologies, Inc., announced in October 2018. While regulatory approvals are progressing, including a Second Request from the DOJ, the company is exploring the potential sale of its Night Vision business as a proactive measure. The company also announced an increase in its quarterly cash dividend and continued its share repurchase program, demonstrating a commitment to returning capital to shareholders. The overall financial performance indicates robust operational execution across all segments, supported by strong cash flow generation.
Key Highlights
- 1Revenue increased by 9% to $1.67 billion for the quarter and 9% to $3.21 billion year-to-date, demonstrating consistent top-line growth.
- 2Income from continuing operations surged by 72% to $225 million for the quarter and 49% to $441 million year-to-date, indicating improved profitability.
- 3Diluted EPS saw a significant increase, rising 74% to $1.88 for the quarter and 50% to $3.66 year-to-date, reflecting enhanced earnings per share.
- 4All three business segments (Communication Systems, Electronic Systems, and Space and Intelligence Systems) reported revenue and operating income growth.
- 5Net cash provided by operating activities increased by 26% to $469 million year-to-date, showcasing strong operational cash generation.
- 6The company is progressing towards its merger with L3 Technologies, Inc., with regulatory reviews underway, and is proactively considering divesting its Night Vision business.
- 7Quarterly cash dividend was increased to $0.685 per share, and the company repurchased $200 million in common stock year-to-date, reflecting a focus on shareholder returns.