L3Harris Expects Higher Earnings and Revenue in 2024

L3Harris Technologies, a leading defense contractor, recently reported its financial performance for the final quarter of last year. Despite a decrease in profit compared to the previous year, the company experienced higher sales. Looking ahead, L3Harris Technologies is optimistic about its future, projecting even stronger earnings and revenue in 2024.

Q4 2023 Results

In the fourth quarter of 2023, L3Harris Technologies achieved a profit of 83 cents per share. Although this was lower than the $2.17 per share in the same quarter the previous year, it still exceeded analysts' expectations. The company's adjusted earnings, excluding one-time items, reached $3.35 per share, slightly surpassing the forecast of $3.31 per share.

Furthermore, L3Harris Technologies saw its revenue rise to $5.34 billion, a significant increase from $4.58 billion in the year-earlier quarter. This 17% growth was primarily driven by the successful acquisitions of Aerojet Rocketdyne and Viasat's Tactical Data Links.

Factors Affecting Earnings

Several factors contributed to the drop in earnings for L3Harris Technologies. The pending sale of the company's Commercial Aviation Solutions business led to an impairment, impacting profitability. Additionally, there was an increase in amortization of acquisition-related intangibles and higher interest expenses from acquisition funding.

Outlook for 2024

Looking ahead to 2024, L3Harris Technologies is optimistic about its financial performance. The company forecasts adjusted earnings between $12.40 and $12.80 per share, representing growth from $12.36 per share in the previous year. Furthermore, L3Harris Technologies projects revenue in the range of $20.7 billion to $21.3 billion, a significant increase from $19.42 billion in 2023.

These projections are slightly below analysts' expectations, who were anticipating adjusted earnings of $13.05 per share on revenue of $21.43 billion.