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L3Harris Technologies, Inc.’s LHX second-quarter 2023 adjusted earnings from continuing operations came in at $2.97 per share, which beat the Zacks Consensus Estimate of $2.94 by 1%. However, the bottom line decreased 8% from the year-ago quarter’s reported figure.
Excluding one-time items, the company reported GAAP earnings of $1.83 per share compared with $2.42 in the prior-year period.
Total Revenues
L3Harris’ revenues came in at $4,693 million, which beat the Zacks Consensus Estimate of $4,365 million by 7.5%. Revenues also rose 13.5% from the year-ago quarter’s $4,135 million.
L3Harris Technologies Inc Price, Consensus and EPS Surprise
L3Harris Technologies Inc price-consensus-eps-surprise-chart | L3Harris Technologies Inc Quote
Segmental Performance
Integrated Mission Systems: Net revenues in the segment came in at $1,735 million, up 7.9% year over year. This was driven by higher revenues from Intelligence, Surveillance and Reconnaissance, increased revenues from power and energy solutions and classified programs, and higher volumes from the Electro Optical and Commercial Aviation business.
The adjusted operating income totaled $174 million, down 15.9% from the prior-year quarter. The adjusted operating margin was 10%.
Space and Airborne Systems: The segment recorded net revenues of $1,715 million, up 9.5% year over year. This upside was largely driven by the ramp-up in new programs and higher revenues from mission networks.
The adjusted operating income decreased 15.9% to $174 million. The adjusted operating margin was 10%.
Communication Systems: Net revenues in the segment increased 21.5% to $1,206 million due to higher volumes from Tactical Communication, legacy platforms and Public Safety and higher revenues from Broadband Communications.
The operating income increased 36.6% to $325 million from that reported in the year-ago quarter. The operating margin was 25.2%.
Financial Position
As of Jun 30, 2023, L3Harris had $366 million in cash and cash equivalents compared with $880 million as of Dec 31, 2022.
The long-term debt as of Jun 30, 2023 was $7,867 million compared with $6,225 million as of Dec 31, 2022.
The net cash inflow from operating activities amounted to $414 million during the six months ended Jun 30, 2023 compared with $749 million in the year-ago period.
2023 View
L3Harris updated its 2023 outlook. It now expects to generate revenues in the range of $18.00-$18.30 billion, up from the prior range of $17.40-$17.80 billion. The Zacks Consensus Estimate for revenues is pegged at $17.86 billion, lower than the midpoint of the guided figure.