NYSE$LHX

L3Harris · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported strong third quarter results and increased 2024 guidance.

L3Harris Technologies reported a strong third quarter with revenue of $5.3 billion, up 8% from the previous year, and diluted EPS of $2.10, a 4% increase. The company's book-to-bill ratio was outstanding at 1.4x, with solid organic growth and improving margins. Due to impressive progress on the LHX NeXt initiative, the company is updating its 2024 savings target to at least $600 million and now expects to reach the overall target of $1 billion a year early.

  • Orders of $7.2 billion; book-to-bill of 1.4x
  • Revenue of $5.3 billion, up 8%, and 5% organically
  • Operating margin of 9.4%; adjusted segment operating margin of 15.7%
  • Diluted earnings per share (EPS) of $2.10; non-GAAP diluted EPS of $3.34

Headline financials

Total Revenue

$5.29B

Previous: $4.92B+7.7%
EPS

$2.10

Previous: $3.19-34.2%
Adjusted Seg. Op. Margin

15.8%

No prior period
GAAP Operating Margin

9.4%

No prior period
Effective Tax Rate (GAAP)

6.0%

No prior period
Adj. Free Cash Flow

$728M

No prior period
Share Repurchase

$190M

No prior period
Dividends Paid

$220M

No prior period
Capital Expenditures

-$290M

Previous: -$312M+7.1%
Free Cash Flow

$110M

Previous: $71M+54.9%
Net Income

$400M

Previous: $383M+4.4%
Operating Income

$495M

Previous: -$4.64B+110.7%
Gross Profit

$1.42B

Previous: $1.31B+8.6%
Cash & Equivalents

$539M

Previous: $499M+8.0%
Total Assets

$41.9B

Previous: $42.3B-1.0%
Stock-Based Comp

$23M

Previous: $22M+4.5%

Revenue & EPS history

L3Harris · Revenue · Quarterly

$5.29B

Q3 2024+7.7%vs Q3 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

L3Harris · $3.86B total across 3 segments · Q4 2021

  • Integrated Mission Systems
    $1.56B+6.3%
  • Space & Airborne Systems
    $1.29B+2.4%
  • Communication Systems
    $1.02B-10.9%

Forward guidance

The company increased its 2024 revenue guidance range to $21.1B - $21.3B, adjusted segment operating margin guidance to ~15.5%, and non-GAAP diluted EPS guidance range to $12.95 - $13.15.

Tailwinds

  • 2024 revenue guidance range increased to $21.1B - $21.3B
  • 2024 adjusted segment operating margin guidance increased to ~15.5%
  • 2024 non-GAAP diluted EPS guidance range increased to $12.95 - $13.15
  • Expect to exceed the 2024 cost savings target of $400 million.
  • Updating 2024 savings target to at least $600 million and now expect to reach the overall target of $1 billion a year early.

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 Q3 2024

Historical avgQ3 2024

+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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