Summary
L3Harris Technologies, Inc. reported its first quarter fiscal year 2022 results, ending April 1, 2022. Total revenue saw a 10% decrease to $4.103 billion compared to $4.567 billion in the prior year period, primarily attributed to prior year divestitures and ongoing supply chain disruptions, particularly in the Communication Systems segment. Despite the revenue decline, income from continuing operations increased by 2% to $475 million, leading to a diluted Earnings Per Share (EPS) of $2.44, an 8% increase from $2.25 in the prior year, driven by a lower share count due to share repurchases and cost management initiatives. The company's cash flow from operations significantly decreased year-over-year, largely due to increased working capital requirements. However, L3Harris maintained a strong liquidity position with $402 million in cash and cash equivalents and an undrawn $2 billion revolving credit facility. The company continued its commitment to shareholder returns, increasing its quarterly dividend and actively repurchasing shares, although at a lower pace than the previous year. Management expressed confidence in their ability to meet financial obligations and fund operations for the foreseeable future.
Financial Highlights
52 data points| Revenue | $4.10B |
| Cost of Revenue | $2.86B |
| Gross Profit | $1.24B |
| SG&A Expenses | $745.00M |
| Operating Income | $475.00M |
| Net Income | $475.00M |
| EPS (Basic) | $2.46 |
| EPS (Diluted) | $2.44 |
| Shares Outstanding (Basic) | 193.20M |
| Shares Outstanding (Diluted) | 195.10M |
Key Highlights
- 1Revenue decreased by 10% year-over-year to $4.103 billion, impacted by divestitures and supply chain issues.
- 2Income from continuing operations increased by 2% to $475 million.
- 3Diluted Earnings Per Share (EPS) grew by 8% to $2.44, benefiting from share repurchases and cost efficiencies.
- 4Net cash provided by operating activities decreased significantly to $39 million from $661 million in the prior year period.
- 5The company repurchased $308 million of its common stock during the quarter, with $2.2 billion remaining under its repurchase program.
- 6L3Harris increased its quarterly cash dividend to $1.12 per share, marking its twenty-first consecutive annual increase.
- 7The company reorganized its business segments from four to three, streamlining operations.
- 8The effective tax rate remained stable at approximately 11%.