L3Harris(US:LHX)2021-04-30 13:31Financial Performance - L3Harris reported a 1.8% increase in organic revenue[3], with U S and international government revenue up by 4.8%[3] - The company achieved a margin expansion of 140 bps, reaching 18.9%, the healthiest result since the merger[4] - First quarter net cost synergies amounted to $33 million, putting the company on track to achieve $320 million - $350 million in cumulative net synergies for the year[4] - Earnings per share (EPS) increased by 14% to $3.18, driven by e3 program, synergies, and share count reduction[4] - Adjusted Free Cash Flow (FCF) was reported at $630 million[5] Capital Deployment - L3Harris returned $909 million to shareholders, including $700 million in share repurchases and $209 million in dividends after a 20% raise[5] - The company anticipates an upside to its $2.3 billion share repurchase guidance upon closing of divestitures[5] Segment Performance - Integrated Mission Systems (IMS) revenue increased by 5.9%[11], with operating income up by 19% and margin expanded by 180 bps to 16.5%[13, 14] - Space & Airborne Systems (SAS) revenue increased by 4.1%[16], with operating income up by 8.6% and margin expanded by 90 bps to 19.4%[16, 17] - Communication Systems (CS) revenue increased by 2.9%[19], with operating income up by 12% and margin expanded by 240 bps to 25.3%[20, 21] - Aviation Systems (AS) revenue decreased by 19%, but only down 8.3% organically[24], Non-GAAP operating income down 13%[24], Non-GAAP margin expanded 120 bps to 15.7%[24] Guidance - L3Harris updated its full-year organic revenue growth guidance to 3.0% - 5.0%[26] - The company projects full-year EPS to be in the range of $12.70 - $13.00[26] - The company expects full-year Free Cash Flow (FCF) to be in the range of $2.8 billion - $2.9 billion[26]