Will Segmental Sales Bolster L3Harris Technologies' Q1 Earnings?

Core Viewpoint - L3Harris Technologies, Inc. (LHX) is expected to report first-quarter 2025 results on April 24, 2025, with a projected revenue growth of 0.9% year-over-year, despite a decline in earnings per share by 23.5% compared to the previous year [1][7][9]. Group 1: Revenue Performance by Segment - The Integrated Mission Systems (IMS) segment is anticipated to see a revenue increase of 1.4% year-over-year, with estimates at $1,692 million, driven by higher demand for defense electronics and airborne sensors [2]. - The Communication Systems unit is expected to report revenues of $1,309 million, reflecting a growth of 1.2% from the prior year, supported by increased demand for resilient communication equipment [3]. - The Aerojet Rocketdyne segment is projected to achieve revenues of $561.7 million, indicating a growth of 3.6% year-over-year, aided by synergies from its acquisition and strong demand for rocket motor production [4]. - The Space and Airborne Systems (SAS) segment is estimated to generate revenues of $1,719.4 million, which represents a decline of 1.8% from the previous year, impacted by the divestiture of its antenna business and challenges in classified development programs [5][6]. Group 2: Overall Financial Expectations - The overall revenue for LHX is estimated at $5.26 billion for the first quarter, marking a growth of 0.9% from the prior-year quarter [7]. - Despite solid revenue growth expectations, the earnings per share estimate is pegged at $2.34, reflecting a significant decline of 23.5% year-over-year, primarily due to lower non-cash non-service FAS pension income [9]. - The company has an Earnings ESP of -1.77% and a Zacks Rank of 3, indicating that the model does not predict a definitive earnings beat for this quarter [10].