Summary
L3Harris Technologies reported solid financial results for the first three quarters of fiscal year 2024, demonstrating revenue growth driven by key segments, particularly the Aerojet Rocketdyne (AR) acquisition which is now fully integrated. Total revenue increased by 12% year-over-year to $15.8 billion, with the AR segment contributing significantly following its acquisition in the prior year. Diluted Earnings Per Share (EPS) for the nine-month period was $5.50, a slight decrease from $5.61 in the prior year, influenced by increased General and Administrative (G&A) expenses and higher interest expenses. The company's liquidity remains strong, with substantial available borrowing capacity and positive cash flow from operations. L3Harris continues to manage its capital structure by refinancing debt and executing its share repurchase program, demonstrating a commitment to returning value to shareholders. The outlook for the defense spending environment remains positive due to geopolitical tensions, although the company navigates uncertainties related to U.S. government appropriations and the upcoming election cycle. Management remains confident in the company's ability to meet its financial obligations and pursue strategic growth initiatives.
Financial Highlights
51 data points| Revenue | $5.29B |
| Cost of Revenue | $3.87B |
| Gross Profit | $1.42B |
| SG&A Expenses | $924.00M |
| Operating Income | $495.00M |
| Net Income | $400.00M |
| EPS (Basic) | $2.11 |
| EPS (Diluted) | $2.10 |
| Shares Outstanding (Basic) | 189.60M |
| Shares Outstanding (Diluted) | 190.50M |
Key Highlights
- 1Total revenue for the first three quarters of fiscal year 2024 increased by 12% to $15.8 billion, driven by strong performance across segments, notably the integration of the Aerojet Rocketdyne (AR) acquisition.
- 2Diluted EPS for the nine-month period was $5.50, a slight decrease from $5.61 in the prior year, primarily due to higher G&A expenses and interest costs.
- 3The company maintained a healthy operating income margin of 26.1% for the nine-month period, showcasing efficient operations.
- 4Net cash provided by operating activities increased by $123 million year-over-year to $1.43 billion for the first three quarters, reflecting improved operational cash generation.
- 5L3Harris has a strong liquidity position with $539 million in cash and cash equivalents and $2.3 billion in available borrowing capacity, net of outstanding commercial paper.
- 6The company continues to return capital to shareholders through a $1.16 quarterly dividend and repurchased $512 million of its common stock in the first three quarters of fiscal 2024.
- 7Backlog, representing remaining performance obligations, stood at $33.8 billion as of September 27, 2024, with approximately 45% expected to be recognized in the next twelve months.