NYSE$LHX
L3Harris · Q2 2020 earnings
Q2 2020 earnings · · Investor relations
Briefing
L3Harris reported second quarter 2020 results with revenue up 138% and flat versus prior-year GAAP and pro forma, respectively.
L3Harris Technologies reported second quarter 2020 revenue of $4.4 billion, up 138% and flat versus prior-year GAAP and pro forma, respectively, and up 2.3% on an organic basis. Net income was $278 million. GAAP EPS was $1.30. Non-GAAP EPS was $2.83.
- 2Q20 revenue $4.4 billion, up 138% and flat versus prior-year GAAP and pro forma, respectively
- Up 2.3% on an organic basis; funded book-to-bill of 1.09
- GAAP earnings per share from continuing operations (EPS) of $1.30, down 41% and 29% versus prior-year GAAP and pro forma, respectively
- Non-GAAP EPS of $2.83, up 13% versus prior-year adjusted pro forma
Headline financials
Revenue & EPS history
L3Harris · Revenue · Quarterly
$4.45B
Revenue by segment
L3Harris · $4.49B total across 4 segments · Q2 2020
- Integrated Mission Systems$1.33B—29.6%
- Space & Airborne Systems$1.25B—27.8%
- Communication Systems$1.11B—24.8%
- Aerojet Rocketdyne$800M—17.8%
Forward guidance
L3Harris updates 2020 guidance as follows: Revenue $18.2 - $18.6 billion, up organically 3% - 5% on an adjusted pro forma basis (unchanged from previous guidance). GAAP net income margin of 7.1%+. Adjusted EBIT margin of 17.5%+. GAAP EPS of $6.03 - $6.43 . Non-GAAP EPS of $11.15 - $11.55 (unchanged from previous guidance). Operating cash flow and adjusted free cash flow at $2.8 - $2.9 billion and $2.6 - $2.7 billion, respectively (unchanged from previous guidance). ~$1.7 billion in share repurchases, inclusive of proceeds from divestitures announced year-to-date (unchanged from previous guidance)
Tailwinds
- Revenue $18.2 - $18.6 billion, up organically 3% - 5% on an adjusted pro forma basis (unchanged from previous guidance)
- Adjusted EBIT margin of 17.5%+
- Non-GAAP EPS of $11.15 - $11.55 (unchanged from previous guidance)
- Operating cash flow and adjusted free cash flow at $2.8 - $2.9 billion and $2.6 - $2.7 billion, respectively (unchanged from previous guidance)
- ~$1.7 billion in share repurchases, inclusive of proceeds from divestitures announced year-to-date (unchanged from previous guidance)
Headwinds
- GAAP net income margin of 7.1%+(decreased from previous guidance of ~8.4%)
- GAAP EPS of $6.03 - $6.43 (decreased from previous guidance of $6.95 - $7.35)
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2020
+0.4%
Avg return
Earnings day
+0.7%
Avg return
5 days after
+2.0%
Avg return
30 days after
56%
39 / 70 earnings
Positive
+11.3%
Q1 2009
Best reaction
-10.1%
Q3 2011
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -1.3% | -5.8% | -2.0% | |
| Q4 2025 | -0.7% | -2.4% | +1.2% | |
| Q3 2025 | +3.0% | +1.5% | -2.9% | |
| Q2 2025 | +0.2% | +0.3% | +2.2% | |
| Q1 2025 | -0.0% | +2.3% | +9.8% | |
| Q4 2024 | +0.1% | -0.6% | -2.8% | |
| Q3 2024 | +2.8% | -0.3% | +1.0% | |
| Q2 2024 | -3.3% | -4.0% | -2.7% | |
| Q1 2024 | +3.3% | +3.1% | +7.5% | |
| Q4 2023 | +2.4% | +3.2% | +5.0% | |
| Q3 2023 | -2.7% | +2.1% | +8.7% | |
| Q2 2023 | -5.8% | -6.0% | -11.5% | |
| Q1 2023 | +0.3% | -2.6% | -8.1% | |
| Q4 2022 | +7.3% | +8.7% | +6.3% | |
| Q3 2022 | -0.5% | -3.5% | -8.5% | |
| Q2 2022 | +7.2% | +9.0% | +4.5% | |
| Q1 2022 | -3.7% | -1.5% | -0.1% | |
| Q4 2021 | -4.0% | -2.5% | +16.0% | |
| Q3 2021 | -1.2% | -1.3% | -4.0% | |
| Q2 2021 | +1.5% | +2.4% | +3.6% | |
| Q1 2021 | +1.2% | +4.0% | +4.2% | |
| Q4 2020 | -1.8% | +1.6% | +3.0% | |
| Q3 2020 | +4.6% | +12.5% | +19.3% | |
| Q2 2020 | -3.1% | -0.6% | +3.8% | |
| Q1 2020 | -2.3% | -3.1% | +6.8% | |
| Q4 2019 | +1.2% | +4.1% | -9.2% | |
| Q3 2019 | +1.6% | -4.0% | -0.9% | |
| Q2 2019 | -1.3% | +1.3% | +6.2% | |
| Q1 2019 | +0.8% | +1.1% | -3.8% | |
| Q4 2018 | +0.9% | -0.4% | +1.2% | |
| Q3 2018 | +2.1% | +4.9% | +4.0% | |
| Q2 2018 | +0.9% | -5.2% | -1.6% | |
| Q1 2018 | +1.4% | +2.3% | +4.3% | |
| Q4 2017 | +0.8% | +1.9% | +7.4% | |
| Q3 2017 | +0.4% | -1.4% | +3.9% | |
| Q2 2017 | +0.1% | -0.1% | +5.2% | |
| Q1 2017 | +1.0% | +1.3% | -1.3% | |
| Q4 2016 | +2.1% | +3.1% | +1.2% | |
| Q3 2016 | -2.2% | — | — | |
| Q2 2016 | +0.8% | — | — | |
| Q1 2016 | +0.0% | — | — | |
| Q4 2015 | -3.7% | — | — | |
| Q3 2015 | -1.3% | — | — | |
| Q2 2015 | +1.2% | — | — | |
| Q1 2015 | -0.2% | — | — | |
| Q4 2014 | +0.2% | — | — | |
| Q4 2013 | +1.2% | — | — | |
| Q3 2014 | +1.2% | — | — | |
| Q2 2014 | -1.0% | — | — | |
| Q1 2014 | +0.2% | — | — | |
| Q3 2013 | -0.6% | — | — | |
| Q2 2013 | -1.9% | — | — | |
| Q1 2013 | -0.9% | — | — | |
| Q4 2012 | +1.6% | — | — | |
| Q3 2012 | -5.8% | — | — | |
| Q2 2012 | +0.3% | — | — | |
| Q1 2012 | -6.3% | — | — | |
| Q4 2011 | +6.1% | — | — | |
| Q3 2011 | -10.1% | — | — | |
| Q2 2011 | -5.0% | — | — | |
| Q1 2011 | -1.1% | — | — | |
| Q4 2008 | -1.9% | — | — | |
| Q4 2010 | -1.9% | — | — | |
| Q3 2009 | +3.4% | — | — | |
| Q3 2010 | +3.4% | — | — | |
| Q2 2010 | -8.3% | — | — | |
| Q4 2009 | +11.3% | — | — | |
| Q1 2010 | +11.3% | — | — | |
| Q2 2009 | +11.3% | — | — | |
| Q1 2009 | +11.3% | — | — |
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