L3Harris(LHX) ZACKS·2025-01-30 16:56Core Viewpoint - L3Harris Technologies, Inc. (LHX) reported strong fourth-quarter and full-year earnings for 2024, surpassing consensus estimates, driven by increased revenues and operating income across various segments [1][2][4]. Financial Performance - The adjusted earnings per share (EPS) for Q4 2024 were $3.47, exceeding the Zacks Consensus Estimate of $3.43 by 1.2% and up 3.6% from $3.35 in the same quarter last year [1] - For the full year 2024, adjusted EPS was $13.10, higher than $12.36 in 2023 and beating the consensus estimate of $13.07 [2] - Total revenues for Q4 2024 reached $5.52 billion, slightly above the consensus estimate of $5.51 billion and a 3.4% increase from $5.34 billion in Q4 2023 [3] - Full-year revenues for 2024 were $21.33 billion, up from $19.42 billion in 2023, also surpassing the consensus estimate of $21.31 billion [4] Segmental Performance - Integrated Mission Systems segment reported net revenues of $1.77 billion, a 9% year-over-year growth, driven by higher aircraft missionization volumes and demand for advanced electronics [5] - Space and Airborne Systems segment saw net revenues decline by 4% to $1.73 billion, attributed to the divestiture of the antenna business and lower organic revenues [7] - Communication Systems segment revenues increased by 5.4% to $1.44 billion, supported by strong demand for resilient communication equipment, although operating income decreased [9] - Aerojet Rocketdyne segment reported revenues of $628 million, a 5.2% increase year-over-year, driven by higher production volumes across key missile programs [10] Financial Position - As of January 3, 2025, L3Harris had $615 million in cash and cash equivalents, an increase from $560 million at the end of 2023 [12] - Long-term debt decreased to $11.08 billion from $11.16 billion as of December 29, 2023 [12] - Net cash flow from operating activities for 2024 was $2.56 billion, up from $2.10 billion in the previous year, with adjusted free cash flow at $2.32 billion compared to $2.03 billion in 2023 [12] 2025 Guidance - L3Harris expects 2025 revenues to be in the range of $21.80-$22.20 billion, higher than the Zacks Consensus Estimate of $21.70 billion [13] - The company anticipates adjusted EPS to be between $10.55-$10.85, lower than the previous guidance of $13.70-$14.00, with the consensus estimate at $14.19 [14] - Adjusted segment operating margin is expected to be in the mid-to-high 15% range, with adjusted free cash flow projected between $2.40-$2.50 billion [14]