Summary
L3Harris Technologies, Inc. reported a net income of $283 million ($1.48 diluted EPS) for the quarter ended March 29, 2024, a decrease from $337 million ($1.76 diluted EPS) in the prior year's quarter. This decline was primarily driven by increased general and administrative expenses, including LHX NeXt initiative costs, and higher interest expense related to recent debt issuances. The company saw a significant 17% increase in revenue to $5,211 million, largely due to the inclusion of Aerojet Rocketdyne (AJRD) revenue and growth in the Communication Systems (CS) and Space & Airborne Systems (SAS) segments. Despite the revenue growth, operating income slightly decreased due to higher unallocated corporate expenses, particularly those related to the LHX NeXt transformation program. The company continues to manage its liquidity effectively, with substantial credit facilities available and a strong backlog of $32.1 billion, providing visibility into future revenue. Key financial activities during the quarter included the issuance of $2.25 billion in new long-term debt to repay the Term Loan 2025, demonstrating active debt management. The company also returned capital to shareholders through dividends and share repurchases, signaling confidence in its financial position and future prospects. Investors should monitor the impact of ongoing integration of AJRD, continued execution of the LHX NeXt initiative, and the broader defense spending environment.
Financial Highlights
52 data points| Revenue | $5.21B |
| Cost of Revenue | $3.86B |
| Gross Profit | $1.35B |
| SG&A Expenses | $970.00M |
| Operating Income | $378.00M |
| Net Income | $283.00M |
| EPS (Basic) | $1.49 |
| EPS (Diluted) | $1.48 |
| Shares Outstanding (Basic) | 189.80M |
| Shares Outstanding (Diluted) | 190.80M |
Key Highlights
- 1Revenue increased by 17% to $5,211 million, primarily driven by the inclusion of Aerojet Rocketdyne (AJRD) revenue and growth in the CS and SAS segments.
- 2Net income decreased to $283 million ($1.48 diluted EPS) from $337 million ($1.76 diluted EPS) in the prior year, impacted by higher expenses.
- 3General and administrative expenses increased significantly due to LHX NeXt initiative costs, including employee severance and consulting expenses.
- 4Interest expense increased, mainly due to interest on the AJRD Notes and commercial paper borrowings.
- 5The company issued $2.25 billion in new long-term fixed-rate debt and used the proceeds to repay its Term Loan 2025.
- 6Backlog remains strong at $32.1 billion, providing significant revenue visibility.
- 7The company repurchased $233 million of its common stock during the quarter, demonstrating commitment to shareholder returns.