UPDATE: L3Harris Technologies (LHX) Tops Q1 EPS by 24c, Revenues Beat; Raises FY21 EPS Guidance, Provides FY21 Revenues Outlook
L3Harris Technologies (NYSE: LHX) reported Q1 EPS of $3.18, $0.24 better than the analyst estimate of $2.94. Revenue for the quarter came in at $4.6 billion versus the consensus estimate of $4.54 billion.
- Revenue
- $4.6 billion, down 1.3% versus prior year, up 1.8% on an organic1 basis
- Funded book-to-bill2 of 1.10
- Margins and earnings
- Net income margin of 10.2%; adjusted earnings before interest and taxes (EBIT) margin3 of 18.9%
- GAAP earnings per share from continuing operations (EPS) of $2.25, up 127%
- Non-GAAP EPS3 of $3.18, up 14%
- Cash flow and capital deployment
- Operating cash flow of $661 million; adjusted free cash flow (FCF)3 of $630 million
- Returned $909 million to shareholders through $700 million in share repurchases and $209 million in dividends
“Our first quarter results demonstrate continued strong execution by the L3Harris team in spite of the pandemic, which provides us confidence in delivering on our increased guidance for the year,” said William M. Brown, Chair and Chief Executive Officer. "Our ability to perform exceptionally, along with the differentiated capabilities highlighted at our Investor Briefing, position us to continue creating value for all stakeholders over the long term."
GUIDANCE:
L3Harris Technologies sees FY2021 EPS of $12.70-$13.00, versus the consensus of $12.93. L3Harris Technologies sees FY2021 revenue of $18.5-18.9 billion, versus the consensus of $18.8 billion.
L3Harris updated 2021 guidance as follows:
- Revenue
- $18.5 billion - $18.9 billion, excluding effect of divestitures, up organically 3.0% - 5.0% (unchanged from previous guidance)
- Margin and earnings
- Adjusted EBIT margin of 18.0% - 18.5% (unchanged from previous guidance)
- Non-GAAP EPS of $12.70 - $13.00 (previous guidance of $12.60 - $13.00)
- Cash flow and capital deployment
- Adjusted free cash flow of $2.8 billion - $2.9 billion (unchanged from previous guidance)
- ~$2.3 billion in share repurchases, excluding use of divestiture proceeds (unchanged from previous guidance)
For earnings history and earnings-related data on L3Harris Technologies (LHX) click here.