L3Harris Technologies, Inc. LHX is slated to report fourth-quarter 2024 results on Jan. 30, 2025, before market open.
See the Zacks Earnings Calendar to stay ahead of market-making news.
L3Harris has a four-quarter average earnings surprise of 2.78%. The strong top-line performance across two of the company’s major three business segments, along with impressive marginal performance, is likely to have boosted its earnings.
LHX’s IMS Unit: A Mixed Bag
Higher sales volume from the company’s avionics products, as well as increased volume for advanced electronics for space and munitions programs, is expected to have boosted the Integrated Mission Systems (“IMS”) segment’s quarterly top-line performance.
However, lower sales volume from the commercial aviation business due to the International Association of Machinists and Aerospace workers’ strike, which ended in November 2024, might have partially affected the IMS segment’s top-line performance.
The Zacks Consensus Estimate for IMS’ fourth-quarter revenues is currently pegged at $1,626.2 million, which indicates a slip of 0.1% from the year-ago quarter’s reported figure.
L3Harris Technologies Inc Price and EPS Surprise
L3Harris Technologies Inc price-eps-surprise | L3Harris Technologies Inc Quote
LHX’s Other Units That Might Have Boosted Revenues
Strong sales growth from Intel & Cyber programs and increased volume supporting FAA mission-critical safety of flight networks are likely to have added impetus to the company’s Space and Airborne Systems (“SAS”) unit’s revenues.
However, the impact of the divestiture of this unit’s antenna business in the second quarter of 2024, lower F-35-related volumes as TR-3 development ramps down and a few challenges from classified development programs in its space business might have partially affected the SAS segment’s top-line performance.
The Zacks Consensus Estimate for the SAS segment’s revenues is pegged at $1, 824.2 million, which indicates an improvement of 1.3% from the year-ago quarter’s reported number.
Higher sales volume from the Tactical Communication business and Integrated Vision Solutions, as a result of increased demand for TDY’s resilient communication equipment, related waveforms, and night vision devices, is expected to have boosted the Communication Systems unit’s top-line performance.
The Zacks Consensus Estimate for this unit’s revenues is pegged at $1,391.5 million, which implies growth of 2.1% from the prior-year quarter’s reported figure.
Q4 Estimates for LHX Stock
With two of its major three segments reflecting solid growth expectations for revenues, we may expect LHX to report notable growth in its top line in the quarter to be reported. Also, positive synergies from the acquisition of Aerojet Rocketdyne might have added impetus to LHX’s fourth-quarter results.
The Zacks Consensus Estimate for sales is pegged at $5.51 billion, which indicates growth of 3.1% from the prior-year quarter’s reported figure.
Solid sales growth expectations must have benefited LHX’s bottom-line performance. Moreover, improved operating margins, driven by operational improvements, favorable program performance and the company’s cost reduction initiatives, are likely to have benefited its earnings.
The consensus estimate for earnings is pegged at $3.43 per share, which implies an increase of 2.4% from the year-ago quarter’s level.
What the Zacks Model Unveils for LHX Stock
Our proven model does not conclusively predict an earnings beat for L3Harris Technologies this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here, as you will see below.
LHX’s Earnings ESP: L3Harris has an Earnings ESP of -0.17%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
LHX’s Zacks Rank: Currently, LHX carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Below we have mentioned the following players from the same sector that have the right combination of elements to beat on earnings this reporting cycle.
Leidos Holdings, Inc. LDOS is set to report fourth-quarter 2024 earnings on Feb. 11, 2025, before market open. It has an Earnings ESP of +12.08% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for LDOS’ earnings is pegged at $2.18 per share. The consensus estimate for sales is pinned at $4.12 billion, indicating year-over-year growth of 3.6%.
Northrop Grumman Corporation NOC is set to report fourth-quarter 2024 results on Jan. 30, before market open. It has an Earnings ESP of +1.37% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for NOC’s earnings is pegged at $6.27 per share. The consensus estimate for sales is pinned at $11.03 billion, indicating year-over-year growth of 3.7%.
Curtiss-Wright CW is set to report fourth-quarter results on Feb. 12, after market close. It has an Earnings ESP of +1.24% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for CW’s earnings is pegged at $3.08 per share. The consensus estimate for sales is pinned at $785.5 million.
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