NYSE$LHX

L3Harris · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

L3Harris reported strong second quarter results driven by solid growth across key end-markets and all four segments.

L3Harris Technologies reported a 5.0% increase in revenue to $4.7 billion, with a 6.2% organic growth. GAAP EPS increased by 55% to $2.01, and non-GAAP EPS increased by 15% to $3.26. The company raised its 2021 adjusted EBIT margin guidance to ~18.5% and non-GAAP EPS guidance to $12.80 - $13.00.

  • Revenue increased by 5.0% versus prior year and 6.2% on an organic basis.
  • GAAP earnings per share (EPS) was $2.01, up 55%.
  • Non-GAAP EPS was $3.26, up 15%.
  • The company raised 2021 adjusted EBIT margin guidance to ~18.5% and non-GAAP EPS guidance to $12.80 - $13.00.

Headline financials

Total Revenue

$4.67B

Previous: $4.45B+5.0%
EPS (adj)

$3.26

Previous: $2.83+15.2%
Capital Expenditures

-$128M

Previous: -$108M-18.5%
Free Cash Flow

$285M

Previous: $175M+62.9%
Net Income

$413M

Previous: $283M+45.9%
Operating Income

-$4.47B

Previous: -$4.63B+3.5%
Gross Profit

$1.42B

Previous: $1.27B+11.6%
Cash & Equivalents

$2.03B

Previous: $1.95B+4.2%
Total Assets

$36.1B

Previous: $37.9B-4.7%
Stock-Based Comp

$34M

No prior period

Revenue & EPS history

L3Harris · Revenue · Quarterly

$4.67B

Q2 2021+5%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

L3Harris · $3.91B total across 3 segments · Q2 2021

  • Integrated Mission Systems
    $1.49B+12.2%
  • Space & Airborne Systems
    $1.29B+3.0%
  • Communication Systems
    $1.13B+1.3%

Forward guidance

L3Harris revised 2021 guidance as follows:

Tailwinds

  • Revenue: $18.1 billion - $18.5 billion
  • Organic revenue growth: up 3.0% - 5.0%
  • Adjusted EBIT margin: ~18.5%
  • Non-GAAP EPS: $12.80 - $13.00
  • Adjusted free cash flow: $2.8 billion - $2.9 billion

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 2021

Historical avgQ2 2021

+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

Earnings price reactions
QuarterReport dateReaction (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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