Summary
L3Harris Technologies reported strong revenue growth of 168% for the quarter ended April 3, 2020, compared to the prior year period, largely driven by the inclusion of L3 operations following the merger. However, net income from continuing operations declined by 20% year-over-year due to a significant goodwill impairment charge of $296 million related to the Commercial Aviation Solutions segment, exacerbated by the COVID-19 pandemic's impact on the commercial aviation market. The company is actively managing its portfolio through planned divestitures of several businesses, including the airport security and automation business, which was completed post-quarter end. Despite these challenges, L3Harris maintained a strong liquidity position and continued its commitment to returning capital to shareholders through dividends and share repurchases, while also managing its debt structure effectively. The company highlighted the impact of COVID-19 on its commercial aviation and public safety sectors, noting potential revenue declines in these areas. Conversely, its significant exposure to the U.S. government, a critical infrastructure sector, is expected to provide a degree of stability. L3Harris is focused on operational efficiency, integration savings, and navigating the uncertain economic environment, signaling a proactive approach to managing current market conditions.
Financial Highlights
53 data points| Revenue | $4.63B |
| Cost of Revenue | $3.30B |
| Gross Profit | $1.33B |
| SG&A Expenses | $812.00M |
| Operating Income | $218.00M |
| Interest Expense | $68.00M |
| Net Income | $194.00M |
| EPS (Basic) | $1.00 |
| EPS (Diluted) | $0.99 |
| Shares Outstanding (Basic) | 217.30M |
| Shares Outstanding (Diluted) | 219.30M |
Key Highlights
- 1Revenue surged by 168% to $4.6 billion, primarily due to the full inclusion of L3 operations post-merger.
- 2Net income from continuing operations decreased by 20% to $195 million year-over-year.
- 3A substantial $296 million non-cash goodwill impairment charge was recorded for the Commercial Aviation Solutions segment, driven by the COVID-19 impact.
- 4The company is progressing with portfolio adjustments, including planned divestitures of several businesses.
- 5Liquidity remains strong with $663 million in cash and cash equivalents and an undrawn $2 billion revolving credit facility.
- 6L3Harris returned capital to shareholders via $700 million in share repurchases and $183 million in dividends during the quarter.