Summary
L3Harris Technologies reported solid financial performance for the third quarter and the first three quarters of fiscal year 2021, demonstrating resilience and strategic execution. Revenue for the quarter ended October 1, 2021, was $4.23 billion, a slight decrease of 5% year-over-year, primarily impacted by business divestitures and supply chain constraints. However, for the first three quarters, revenue stood at $13.46 billion, a marginal 1% decrease, showcasing stability. Net income attributable to L3Harris common shareholders grew by 13% to $481 million in the quarter and a substantial 47% to $1.36 billion for the year-to-date period, with diluted EPS rising to $2.39 and $6.64, respectively. The company continued its strategic portfolio transformation, completing several business divestitures while also benefiting from organic growth in key segments like Space and Airborne Systems. The company's operational excellence initiatives and integration benefits are contributing to improved profitability, as evidenced by an increase in gross margin percentage. L3Harris also demonstrated a strong commitment to returning capital to shareholders, with significant share repurchases and an increased quarterly dividend. The company maintains a healthy liquidity position, supported by operating cash flows and an available revolving credit facility, positioning it well for future operations and strategic initiatives.
Financial Highlights
52 data points| Revenue | $4.23B |
| Cost of Revenue | $2.92B |
| Gross Profit | $1.31B |
| SG&A Expenses | $793.00M |
| Operating Income | $1.36B |
| Net Income | $481.00M |
| EPS (Basic) | $2.41 |
| EPS (Diluted) | $2.39 |
| Shares Outstanding (Basic) | 199.50M |
| Shares Outstanding (Diluted) | 201.60M |
Key Highlights
- 1Total revenue for the three quarters ended October 1, 2021, was $13.46 billion, a slight decrease of 1% compared to the prior year, indicating stable top-line performance despite divestitures.
- 2Net income attributable to L3Harris common shareholders increased significantly by 47% to $1.36 billion for the first three quarters of 2021, compared to $928 million in the prior year.
- 3Diluted Earnings Per Share (EPS) saw a substantial increase of 56% to $6.64 for the first three quarters of 2021, up from $4.27 in the comparable period of 2020.
- 4The company executed a notable $1.598 billion in net proceeds from business divestitures during the three quarters ended October 1, 2021, reflecting ongoing portfolio optimization.
- 5Despite a $150 million net decrease in cash and cash equivalents for the first three quarters of 2021, the company ended the period with $1.126 billion in cash and maintained a $2 billion revolving credit facility, indicating strong liquidity.
- 6L3Harris repurchased approximately $2.88 billion of its common stock during the first three quarters of 2021, demonstrating a commitment to shareholder returns.
- 7The gross margin percentage improved to 30% for the first three quarters of 2021 from 29% in the prior year, driven by operational excellence and integration benefits.