Summary
L3Harris Technologies, Inc. reported strong financial results for the second quarter of fiscal year 2021, driven by revenue growth across its key segments and improved profitability. Total revenue increased by 5% year-over-year to $4.67 billion, with notable growth in Integrated Mission Systems and Space and Airborne Systems. Net income attributable to common shareholders rose significantly by 46% to $413 million, or $2.01 per diluted share. This performance was bolstered by substantial gains from business divestitures, which more than offset impairment charges related to specific business units. The company also demonstrated robust operating cash flow, enabling significant share repurchases and continued dividend payments, reinforcing its commitment to returning capital to shareholders. Strategic divestitures of non-core assets are progressing, contributing to a more streamlined and focused business portfolio. The company's financial health remains solid, supported by strong cash flow generation and an undrawn $2 billion revolving credit facility. L3Harris is actively managing its portfolio through strategic divestitures, which generated significant proceeds during the quarter. The company's outlook is positive, with a substantial backlog of $20.2 billion providing visibility for future revenue. Despite ongoing macroeconomic uncertainties, L3Harris is well-positioned due to its diversified business segments and strong customer relationships, particularly with the U.S. Government.
Financial Highlights
52 data points| Revenue | $4.67B |
| Cost of Revenue | $3.25B |
| Gross Profit | $1.42B |
| SG&A Expenses | $891.00M |
| Operating Income | $882.00M |
| Net Income | $413.00M |
| EPS (Basic) | $2.03 |
| EPS (Diluted) | $2.01 |
| Shares Outstanding (Basic) | 203.60M |
| Shares Outstanding (Diluted) | 205.60M |
Key Highlights
- 1Total revenue for the quarter increased 5% year-over-year to $4.67 billion.
- 2Net income attributable to common shareholders surged 46% to $413 million ($2.01 per diluted share).
- 3Gross margin percentage improved to 30% from 29% in the prior year's quarter.
- 4Significant positive impact from business divestiture-related gains ($180 million pre-tax) offset impairment charges.
- 5Net cash provided by operating activities was strong at $1.38 billion for the first two quarters of the fiscal year.
- 6The company repurchased $1.55 billion of its common stock and paid $416 million in dividends during the first two quarters.
- 7Ending backlog stood at $20.2 billion, providing good revenue visibility.