L3Harris Technologies (NYSE:LHX) Q3 2020 Earnings Prep

in EARNINGS/INVESTING IDEAS by

L3Harris Technologies, Inc. (NYSE:LHX) is scheduled to report Q3 earnings results on October 30, 2020.

The company is expected to report earnings of $2.74/share on revenue of $4.497 billion. The consensus earnings per share (EPS) of $2.74/share is based on a poll of 19 analysts and represents a growth in eps of 6.2% over the same quarter last year, when the company reported earnings of $2.58/share.

The revenue forecast of $4.497 billion based on a poll of 16 analysts implies a year-over-year (YoY) growth in revenue of 1.5%. Last year the company reported $4.431 billion in revenue for the quarter.

Expected to report EPS growth of 6.2% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $4,497.37 $4,431.00 1.5%
EPS $2.74 $2.58 6.2%

Earnings Call Trends

Management has been great at managing analyst expectations historically. The company has a perfect record over the last 8 tracked quarters of exceeding earnings guidance.

What are your expectations from L3Harris Technologies, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $2.58 $2.83 9.8% Beat
Q1, 2020 $2.61 $2.80 7.5% Beat
Q4, 2019 $2.79 $2.85 2.3% Beat
Q3, 2019 $2.39 $2.58 8.0% Beat
Q2, 2019 $2.27 $2.42 6.7% Beat
Q1, 2019 $1.71 $1.78 3.9% Beat
Q4, 2018 $1.76 $1.78 1.1% Beat
Q3, 2018 $1.63 $1.67 2.4% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending July 3, 2020, the stock price reacted by falling −2.8%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 31, 2020 $173.23 $168.33 −2.8% Decline
May 5, 2020 $186.82 $182.51 −2.3% Decline
February 4, 2020 $220.89 $223.47 1.2% Increase
October 30, 2019 $202.99 $206.31 1.6% Increase

Fundamentals And Technical Analysis

L3Harris Technologies, Inc. is currently trading at $169.83/share, down −1.1% for the day. The company is trading at approximately 73.5% of its 52-week high of $230.99/share. The company’s stock price is up 0.9% since the last earnings report and down −0.8% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 39.65 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:LHX Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 22.43 and a forward P/E multiple of 14.96.

L3Harris Technologies, Inc.’s current share price also implies a price-to-book (P/B) multiple of 1.66. The following table summarizes some other key fundamental ratios:

Data as of October 27, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date July 3, 2020
Stock Price (Current) $169.83
P/E Ratio 22.4x
P/E Ratio (Fwd) 15.0x
PEG Ratio −1.4
Total Debt / Total Capital 17.1%
Levered Free Cash Flow $2.137 billion
EV / EBITDA 9.6x

Finbox

L3Harris Technologies, Inc. is a large-cap stock with a market capitalization of $36.716 billion and a total enterprise value of $42.607 billion. The company operates in the Industrials sector and the Aerospace & Defense industry.

L3Harris Technologies, Inc., an aerospace and defense technology company, provides mission-critical solutions for government and commercial customers worldwide. The company’s Integrated Mission Systems segment provides multi-mission intelligence, surveillance, and reconnaissance (ISR) systems; and communication systems, as well as fleet management support, sensor development, modifications, and periodic depot maintenance services for ISR and airborne missions. It also manufactures and integrates maritime integrated command, control, communications, computers, and cyber ISR systems for maritime platforms; unmanned surface and undersea autonomous solutions; power and ship control systems; and other electronic and electrical products and systems, as well as designs and manufactures electro-optical and infrared sensors and surveillance, and targeting systems. Its Space and Airborne Systems segment offers space payloads, sensors, and full-mission solutions; classified intelligence and cyber defense solutions; and avionics and electronic warfare systems. The company’s Communication Systems segment provides tactical radio communications, SATCOM terminals, and battlefield management networks; broadband secured mobile networked communication equipment, including airborne, space, and surface data link terminals, as well as ground stations and transportable tactical SATCOM systems; helmet and weapon mounted integrated night vision systems; and radios, systems applications, and equipment for public safety and professional communications. Its Aviation Systems segment offers defense aviation products; security, detection, and other commercial aviation products; commercial and military pilot training solutions; and mission networks for air traffic management. The company was formerly known as Harris Corporation and changed its name to L3Harris Technologies, Inc. in June 2019. L3Harris Technologies, Inc. was founded in 1895 and is headquartered in Melbourne, Florida.

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