8-KEarnings & ResultsRegulation FDOther Events+1

L3HARRIS TECHNOLOGIES, INC. /DE/ 8-K Report, Financial Results (Feb 2, 2017)

Filed February 2, 2017For Securities:LHX

Summary

L3Harris Technologies (LHX) filed an 8-K on February 2, 2017, to report on its second quarter fiscal year 2017 results and provide updated financial guidance. Key developments include the approval of a new $1 billion share repurchase authorization, augmenting an existing $584 million remaining authorization, with an expectation to repurchase a total of $700 million in fiscal year 2017. This signals strong confidence from management in the company's financial health and a commitment to returning capital to shareholders. The company also updated its fiscal year 2017 guidance for net income per diluted share (GAAP and non-GAAP) and revenue. While specific figures are detailed in the accompanying press release (Exhibit 99.1), these updates are crucial for investors to assess the company's forward-looking performance and profitability. The filing also emphasizes the use of non-GAAP financial measures to provide a clearer view of operational performance, excluding certain acquisition-related and restructuring charges, which management believes aids in understanding underlying business trends.

Key Highlights

  • 1Approved a new $1 billion share repurchase authorization, adding to the existing $584 million.
  • 2Expects total share repurchases in fiscal year 2017 to reach $700 million.
  • 3Provided updated guidance for fiscal year 2017 net income per diluted share (GAAP and non-GAAP).
  • 4Updated fiscal year 2017 revenue guidance.
  • 5Emphasized the use of non-GAAP financial measures to present operational performance excluding specific charges.
  • 6The combined share repurchase authorization of $1.584 billion has no stated expiration date.

Frequently Asked Questions

The approval of a new $1 billion share repurchase authorization, in addition to the existing $584 million, demonstrates management's confidence in the company's financial position and its commitment to returning capital to shareholders. The expectation to repurchase $700 million in fiscal year 2017 indicates a proactive approach to enhancing shareholder value.

L3Harris updated its guidance ranges for fiscal year 2017 regarding expected net income per diluted share, both on a GAAP and non-GAAP basis, as well as its expected revenue for the full fiscal year. Investors should refer to the furnished press release (Exhibit 99.1) for the specific updated figures.

L3Harris uses non-GAAP financial measures, such as excluding Exelis acquisition-related items and restructuring charges, to provide investors with a clearer view of the company's ongoing operational performance. Management believes these measures help in analyzing trends and understanding performance separate from items that may have a disproportionate impact in a specific period.

No, the company stated that the combined $1.584 billion share repurchase authorization does not have a stated expiration date, providing flexibility for repurchases over time.