Will Segmental Sales Bolster L3Harris Technologies Stock in Q4 Earnings?

Core Viewpoint - L3Harris Technologies, Inc. (LHX) is expected to report its fourth-quarter 2024 results on January 30, 2025, with a consensus estimate indicating a 3.1% growth in sales year-over-year to $5.51 billion and a 2.4% increase in earnings per share to $3.43 [1][8][9] Segment Performance - The Integrated Mission Systems (IMS) segment is anticipated to show mixed results, with higher sales from avionics and advanced electronics, but potentially impacted by lower commercial aviation sales due to a recent strike. The revenue estimate for IMS is $1,626.2 million, reflecting a slight decline of 0.1% from the previous year [3][4] - The Space and Airborne Systems (SAS) unit is expected to benefit from strong sales in Intel & Cyber programs, with a revenue estimate of $1,824.2 million, indicating a 1.3% increase year-over-year. However, challenges from divestitures and lower F-35 volumes may affect performance [5][6] - The Communication Systems unit is projected to see growth driven by increased demand for resilient communication equipment, with a revenue estimate of $1,391.5 million, representing a 2.1% increase from the prior year [7] Earnings Expectations - Overall, L3Harris is expected to report notable growth in its top line, supported by positive synergies from the acquisition of Aerojet Rocketdyne. The consensus estimate for earnings is $3.43 per share, which implies a 2.4% increase from the year-ago quarter [8][9] - Despite the positive growth expectations, the model does not predict a definitive earnings beat for L3Harris, as the Earnings ESP stands at -0.17% and the company holds a Zacks Rank of 3 (Hold) [10][11]