Group 1 - L3Harris Technologies (NYSE: LHX) provides comprehensive technology solutions across various domains including space, air, land, sea, and cyber in the defense market [1] - The company is transitioning into a pure player in the defense technology sector, indicating a focused strategy on defense-related offerings [1] - The investment approach emphasizes fundamental analysis, long-term growth, and quality, targeting companies with strong growth potential and reasonable valuations [1] Group 2 - The investment strategy involves constructing a diversified portfolio of 15-20 stocks, focusing on risk management and macro-driven sector weights [1] - The goal is to achieve a 15% annual return, reflecting a disciplined approach to trading and valuations [1]

Summary of L3Harris Technologies, Inc. Conference Call Company Overview - **Company**: L3Harris Technologies, Inc. (NYSE:LHX) - **Participants**: Ken Bedingfield (CFO), Ross Niebergall (President, Aerojet Rocketdyne) Key Industry Insights - **Geopolitical Context**: The company acknowledges ongoing geopolitical tensions, particularly regarding Ukraine and Israel, with China identified as a significant long-term threat [5][20]. - **Government Spending**: The new administration's focus on national security and efficiency initiatives is noted, with the company positioning itself to adapt to potential changes in budget and mission needs [5][7]. Financial Performance and Projections - **Cost-Saving Initiatives**: The LHX NeXt program aims to achieve $1 billion in annual run rate cost savings by 2026, with $600 million expected in 2024 [8]. - **Margin Improvement**: Approximately 40% of the savings from LHX NeXt will benefit the company’s margins, while 60% will provide savings to the government [8]. - **Revenue Growth**: The company anticipates faster growth in 2026 compared to 2025, driven by strategic investments and improved operational efficiencies [14][30]. Aerojet Rocketdyne Integration - **Integration Success**: The integration of Aerojet Rocketdyne has exceeded initial savings forecasts, with a focus on leveraging L3Harris's broader capabilities [9][10]. - **Capacity Expansion**: The company is investing in capacity improvements, including a $216 million Defense Production Act funding to enhance production capabilities for solid rocket motors [15][19]. Supply Chain Management - **Supplier Engagement**: The company is actively working with suppliers to enhance capacity and efficiency, including long-term agreements to secure better pricing [11][12]. - **Supply Chain Savings**: Supply chain initiatives are expected to contribute significantly to overall cost savings, accounting for 60-65% of the LHX NeXt savings [12]. Strategic Focus Areas - **Hypersonics Development**: L3Harris is investing in hypersonics, with a focus on developing advanced propulsion systems that can operate at supersonic speeds [22][23]. - **Legacy Contracts**: The company is transitioning from low-margin legacy contracts to new, more profitable contracts, with expectations of improved profitability by early 2026 [27][28]. Cash Flow and Financial Guidance - **Cash Flow Targets**: The company generated $2 billion in cash in 2023, with projections of $2.2 billion in 2024 and $2.4 billion in 2025, aiming for $2.8 billion in 2026 [33]. - **Sales Growth**: L3Harris targets $23 billion in sales by 2026, with a margin goal of at least 16% [33]. Conclusion - L3Harris Technologies is strategically positioned to adapt to changing government priorities and geopolitical challenges while focusing on cost savings, operational efficiencies, and capacity expansion to drive future growth and profitability.

Zacks Premium and Style Scores - Zacks Premium offers daily updates of Zacks Rank and Zacks Industry Rank, full access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens to help investors make informed decisions [1] - Zacks Style Scores are complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days, with ratings from A to F based on value, growth, and momentum characteristics [3] - The Style Scores are divided into four categories: Value Score, Growth Score, Momentum Score, and VGM Score, which combines all three styles [4][5][6][7] Zacks Rank and Style Scores Integration - Zacks Rank uses earnings estimate revisions to build a winning portfolio, with 1 (Strong Buy) stocks producing an average annual return of +25.41% since 1988, more than double the S&P 500 [8][9] - To maximize returns, investors should consider stocks with a Zacks Rank 1 or 2 and Style Scores of A or B, as these have the highest probability of success [10] - Stocks with a 3 (Hold) rank should also have Style Scores of A or B to ensure upside potential, while stocks with 4 (Sell) or 5 (Strong Sell) ratings, even with high Style Scores, are likely to decline due to downward-trending earnings forecasts [11][12] L3Harris Technologies (LHX) Analysis - L3Harris Technologies, Inc was formed in 2019 through the merger of L3 Technologies and Harris Corporation and operates in aerospace and defense, with four major business segments following the acquisition of Aerojet Rocketdyne in 2023 [13] - LHX has a Zacks Rank of 3 (Hold) and a VGM Score of B, with a Momentum Style Score of A and shares up 1% over the past four weeks [14] - For fiscal 2024, five analysts revised their earnings estimates upwards in the last 60 days, increasing the Zacks Consensus Estimate by $0.03 to $13.09 per share, with an average earnings surprise of 2.8% [14][15]

Company and Industry Overview * **Company**: L3Harris Technologies, Inc. (NYSE:LHX) * **Market Cap**: $50 billion * **Industry**: Aerospace & Defense * **Focus**: Trusted disruptor in the industry, delivering advanced capabilities for U.S. industry allies, leading industry operating margins, mid-teens and trending higher. Key Growth Drivers * **Space**: Significant growth with over 40 satellite contracts awarded by the Space Development Agency. * **Air**: Flattish industry growth, but focus on electronic warfare and components. * **Navy and Maritime**: Growth area with focus on autonomy, including autonomous surface and autonomous undersea vehicles. * **Land**: Networks, radios, and night vision goggles. * **Cyber**: $1 billion cyber business growing well over the last few years. * **Aerojet Rocketdyne**: Acquisition driving growth, with significant demand and investments in new facilities. Business Model and Strategy * **Commercial Business Model**: Selling to the government in a commercial-like manner, reducing regulations and streamlining the acquisition process. * **Agile and Responsive**: Positioning the company to rapidly respond to changing threats or budget dynamics. * **Innovation**: Investing in venture capital, strategic partnerships (e.g., Palantir), and technology development. Communications Systems * **Tactical Radios**: Significant growth opportunities with a $10 billion pipeline of opportunities. * **Software-Defined Radios**: Focus on software and network capabilities, with a new go-to-market approach. * **Interoperability**: High demand for interoperable hardware, particularly in Europe. Aerojet Rocketdyne * **Demand**: Significant demand for solid rocket motors, with high demand and investments in new facilities. * **Supply Chain**: Addressing supply chain challenges through long-term agreements and investments in new facilities. * **Employee Morale**: High employee satisfaction and retention rates. LHX NeXt * **Cost Savings**: Targeting $1 billion in run rate savings by 2026, with $600 million expected in 2024. * **Transformation**: Transforming the business function by function, investing in technology, and streamlining operations. * **Employee Engagement**: High employee engagement and motivation. Future Outlook * **Revenue**: Targeting $23 billion in sales by 2026. * **Margins**: Targeting at least 16% margins by 2026. * **Free Cash Flow**: Targeting $2.8 billion of free cash flow per share by 2026. * **Innovation**: Embracing new entrants and technology to disrupt the industry.

L3Harris Technologies NYSE: LHX has many factors in its favor to provide ample tailwind for share prices, including Donald Trump. His defense policies were a boon to the defense industry during the first administration and will likely do so again. The opportunity for investors is that the stock outperformed in a bullish market and will likely do so again. The stock rose by 100% from November 2016 through November 2020 and is on track to set new highs in 2024 and 2025.  Get L3Harris Technologies alerts:L3Har ...

Group 1 - L3Harris Technologies, Inc. is highlighted as a high-conviction dividend investment, showcasing its strong qualities as a diversified defense contractor [1] - The article emphasizes the beneficial long position held by the analyst in L3Harris Technologies and RTX, indicating confidence in these stocks [1] Group 2 - The article does not provide specific financial metrics or performance data for L3Harris Technologies, focusing instead on qualitative aspects of the company [2]

L3Harris Technologies Inc LHX stock is trading higher after the company reported better-than-expected third-quarter financial results.On Thursday, L3Harris reported third-quarter revenue of $5.3 billion, up by 8%, topping the analyst consensus of $5.28 billion. The defense contractor reported adjusted EPS of $3.34, above consensus estimates of $3.26.Also Read: What’s Going On With Nvidia, AMD And Other Chip Stocks On Friday?L3Harris revised its full-year 2024 revenue guidance from $21 billion—$21.3 billion ...

Financial Data and Key Metrics Changes - The company achieved consolidated revenue growth of 8% in Q3 2024, with operating margins improving to 15.7%, a 70 basis point increase driven by program execution and operational performance [14][15]. - Non-GAAP EPS grew by 5%, and on a pension-adjusted basis, EPS increased by 8%, positioning the company to achieve the top end of its full-year guidance range of 9% to 11% pension-adjusted EPS growth [15][19]. - Free cash flow generated was over $700 million, with adjusted free cash flow of $728 million, primarily driven by increased operating income and effective working capital management [16]. Business Line Data and Key Metrics Changes - The Communications segment reported a revenue increase of 10%, supported by domestic and international demand for resilient communications equipment and higher volumes for night vision devices [16][18]. - The Integrated Mission Systems (IMS) segment saw a revenue increase of 7% year-over-year, driven by higher volumes of avionics products and advanced electronics for space and munitions programs [17]. - The Space and Airborne Systems (SAS) segment's revenue was flat due to the divestiture of the antenna business and lower F-35 related volumes, but classified program growth in Intel and cyber partially offset these declines [17]. Market Data and Key Metrics Changes - The company secured a $600 million Next Generation Jammer contract, establishing a long-term jamming franchise worth billions in high-margin production [9]. - A $1.2 billion IDIQ contract with the U.S. Navy for the P-8A Poseidon fleet was awarded, strengthening relationships within the ISR sector [10]. - International contracts for software-defined tactical radios by NATO allies totaled over $400 million, highlighting strong international demand [10][11]. Company Strategy and Development Direction - The company is focused on profitable growth, emphasizing a strategy that prioritizes returns and cash generation rather than growth for growth's sake [5][6]. - Key acquisitions, including Aerojet Rocketdyne, and divestitures of non-core assets have refined the company's portfolio to reinforce its national security focus [4]. - A strategic partnership with Palantir was announced to enhance capabilities in AI and data management, aligning with the White House's directive to increase AI usage in defense [5][31]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a 2026 framework of $23 billion in revenue, at least 16% segment operating margin, and $2.8 billion in free cash flow, with expectations for growth rates in 2026 to exceed those of 2025 [13]. - The company anticipates continued strong demand across all segments, with a record backlog of $34 billion and a book-to-bill ratio of 1.4 [14]. - Management highlighted the importance of agility and responsiveness in meeting customer needs in a complex global threat environment [20][21]. Other Important Information - The company is on track to exceed its 2024 run rate cost savings target of $400 million, now expecting to achieve at least $600 million by year-end [6][7]. - The LHX NeXt program is transforming operations, focusing on supply chain management and modernizing digital infrastructure [7][8]. - The company is committed to maintaining a disciplined approach to bidding and cost management to enhance margins across all segments [43][44]. Q&A Session Summary Question: What are the biggest drivers of the acceleration in organic growth from '24 to '26? - Management indicated that a record backlog and alignment with U.S. budget priorities will support growth, with significant opportunities in the Communications segment and international markets [22][23]. Question: Can you elaborate on the cost reduction efforts and their impact on margins? - Management confirmed that they are on track to achieve the $1 billion cost reduction target ahead of schedule, which is expected to positively impact margins in 2025 [24][26]. Question: What is the strategic rationale behind the partnership with Palantir? - The partnership aims to leverage complementary capabilities without upfront investment, enhancing operational efficiency and data-driven decision-making [30][31]. Question: How is the company positioned in the solid rocket motors market amid new entrants? - Management expressed confidence in maintaining and growing market share, citing strong demand and ongoing investments to increase production capacity [51][53]. Question: What is the outlook for the night vision goggles business? - Management is optimistic about the night vision goggles, noting that funding is now included in the budget, which is a positive change from previous years [39][40].

L3Harris Technologies, Inc. (LHX) reported third-quarter 2024 adjusted earnings (from continuing operations) of $3.34 per share, which beat the Zacks Consensus Estimate of $3.27 by 2.1%. The bottom line also increased 4.7% from the year-ago quarter’s figure of $3.19.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Excluding one-time items, the company reported GAAP earnings of $2.10 per share, up from $2.02 generated in the prior-year period.The year-over-year improvement in the bott ...

L3Harris (LHX) reported $5.29 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 7.7%. EPS of $3.34 for the same period compares to $3.19 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $5.32 billion, representing a surprise of -0.45%. The company delivered an EPS surprise of +2.14%, with the consensus EPS estimate being $3.27.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Stree ...