L3Harris loses despite stronger than expected earnings; record defense backlog 📈

The American defense technology company L3Harris (LHX.US) reported Q4 and full-year 2024 results, with annual sales at $21.3 billion, up 10% YoY and 4% organically quarterly expansion; record backlog at $34 billion and $24.2 billion in orders. Shares are up 2% after the report.

• Q4 2024 highlights include revenue of $5.5 billion up 3% YoY, operating margin of 10.3% with adjusted earnings per share of $3.47, surpassing above analyst consensus of $3.44
• L3Harris exceeded its cost-savings target for 2024, with $800 million through the LHX NeXt initiative; raising its overall cost-savings goal to $1.2 billion in FY 2025
• The company projects revenue at $21.8-22.2 billion in 2025 calendar year, with adj operating margin in the mid to high 15% range. The company expects Non-GAAP EPS of $10.55-10.85 and adjusted free cash flow at $2.4-2.5 billion.
• L3Harris reported fourth quarter adjusted earnings per share of $3.47, surpassing the analyst consensus of $3.44. Revenue for the quarter came in at $5.5 billion, in line with analyst expectations and up 3% YoY. The company noted that organic revenue growth was 4% for the quarter.
• L3Harris provided guidance for fiscal year 2025, projecting earnings per share between $10.55 and $10.85 and revenue in the range of $21.8 billion to $22.2 billion. The midpoint of the revenue guidance at $22 billion is slightly above the analyst consensus of $21.9 billion.

L3Harris (LHX.US, D1 interval)

L3Harris shares are still below EMA200 (red line), and even stronger than expected earnings, with US Iron Dome defense program, where L3Harris may be a beneficiary as well as RTX Corp (RTX.US) didn't lead to trend reversal in pre-market. The stock may open today session at $209.

Source: xStation5