Will Segment Sales Benefit L3Harris Technologies in Q3 Earnings?

Core Viewpoint - L3Harris Technologies, Inc. (LHX) is expected to report strong third-quarter 2024 results, driven by solid performance across its business segments despite high interest expenses [1][4]. Group 1: Revenue Expectations - The Integrated Mission Systems (IMS) segment is projected to see a revenue increase of 4.1% year-over-year, with estimated revenues of $1,632.4 million, supported by higher sales from the maritime business [2]. - The Space and Airborne Systems (SAS) unit is anticipated to report revenues of $1,739.5 million, reflecting a 3.2% improvement from the previous year, bolstered by strong sales in Space Systems and Intel & Cyber programs [3]. - The Communication Systems unit is expected to achieve revenues of $1,353.3 million, indicating a growth of 7.8% year-over-year, driven by increased sales in Tactical Communication and Broadband Communications [3]. Group 2: Overall Financial Performance - The consensus estimate for LHX's total third-quarter sales is $5.30 billion, representing a 7.9% increase from the prior-year quarter [4]. - The expected earnings per share for the third quarter is $3.26, which implies a 2.2% increase compared to the same quarter last year [4]. - Positive synergies from the acquisition of Aerojet Rocketdyne are likely to enhance LHX's third-quarter results, alongside improved operating margins due to operational efficiencies and cost reduction initiatives [4]. Group 3: Earnings Prediction - The Zacks model indicates a strong likelihood of an earnings beat for L3Harris, supported by an Earnings ESP of +1.19% and a Zacks Rank of 3 [5].