L3Harris Technologies Reports Q4 Earnings Beat Expectations

L3Harris Technologies reports Q4 earnings surpassing projections, but saw a 20.5% decline from its 52-week high. Investors should consider the mixed outlook based on year-over-year performance against competitors.

Date: 14-03-2025

AI Rating: 6

Earnings Per Share (EPS): L3Harris Technologies reported adjusted earnings of $3.47 per share for Q4 2024, which surpassed the consensus estimate. This indicates strong profitability in the latest quarter.

Revenue Growth: The company achieved revenues of $5.5 billion, exceeding expectations due to heightened demand for communication equipment, night vision devices, and increased production from Aerojet Rocketdyne. This growth could positively influence investor confidence.

Free Cash Flow (FCF): LHX's adjusted free cash flow for 2024 was reported at $2.3 billion, demonstrating solid growth and suggesting effective cash management.

Despite the positive earnings, revenues, and cash flow, L3Harris Technologies has experienced significant price declines recently, which may dampen investor sentiment. The stock has decreased by 20.5% from its 52-week high and dropped 2% over the past year, reflecting a lag behind the Industrial Select Sector SPDR Fund's performance.

The market's perception of L3Harris's performance may hinge on its ability to overcome past underperformance against competitors like GE Aerospace, which has had a remarkable rise in stock value. Analysts maintain a 'Moderate Buy' rating based on the company's growth prospects, but continuous monitoring is essential as they are trading below the mean price target of $259.91. This situation speaks to a slight concern regarding investor confidence in L3Harris's long-term prospects amidst competitive pressures.

Stocks: LHX GE