L3Harris Q3 Earnings: Revenue Beat, EPS Beat, Raised Guidance And More

L3Harris Technologies Inc LHX reported third-quarter financial results after the market close on Thursday. Here’s a rundown of the print.

Q3 Earnings: L3Harris reported third-quarter revenue of $5.3 billion, beating the consensus estimate of $5.28 billion. The defense contractor reported adjusted earnings of $3.34 per share, beating analyst estimates of $3.26 per share, according to Benzinga Pro.

Total revenue was up 8% on a year-over-year basis, primarily driven by the acquisition of Aerojet Rocketdyne. L3Harris noted that organic revenue was up 5% year-over-year. Adjusted earnings also jumped 5% on a year-over-year basis.

L3Harris generated $780 million in operating cash flow and $728 million in adjusted free cash flow during the quarter, up 44% and 18% respectively. The company noted that orders grew to $7.2 billion in the quarter.

“We are making impressive progress on our LHX NeXt initiative and expect to exceed the 2024 cost savings target of $400 million,” said Christopher Kubasik, chair and CEO of L3Harris.

“As a result, we are updating our 2024 savings target to at least $600 million and now expect to reach the overall target of $1 billion a year early. Our pipeline provides opportunity for additional cost savings opportunities to exceed the $1 billion target. All of this gives us confidence to deliver 2026 segment operating margins of at least 16%.”

Related Link: Palantir Stock Moves Higher On L3Harris Partnership: What You Need To Know

Outlook: L3Harris raised its full-year 2024 revenue guidance from a range of $21 billion to $21.3 billion to a new range of $21.1 billion to $21.3 billion. The company also narrowed its full-year earnings forecast from a range of $12.85 to $13.15 per share to a new range of $12.95 to $13.15 per share.

Management will further discuss the company’s quarterly results on a conference call slated for 8:30 a.m. ET Friday.

What Else: L3Harris’s CEO appeared on CNBC’s “Closing Bell: Overtime” after the company released earnings. He highlighted that L3Harris has now exceeded expectations in five consecutive quarters as it focuses on positive changes across the company. He also discussed the advantages of the company’s recent partnership with Palantir Technologies PLTR.

“The hallmark of the strategy is partnerships, so I’m actually more excited to be on stage here with Alex [Karp] to talk about our partnership than I am a great third quarter,” Kubasik said.

L3Harris and Palantir announced Wednesday that the companies entered into a strategic partnership focused on combining L3Harris' sensors and software-defined systems with Palantir's Artificial Intelligence Platform. The partnership includes collaboration on U.S. Army programs and development of advanced technologies. L3Harris will also leverage Palantir's AIP internally for enterprise-wide digital transformation initiatives.

“Supply chain is easing, our LHX Next initiative is working, so really everything is coming together nicely,” Kubasik said.

LHX Price Action: L3Harris shares were up 4.37% in after-hours, trading at $254.85 at the time of publication Thursday, according to Benzinga Pro

Photo: Courtesy of L3Harris.