Expectations for L3Harris Technologies' Q3 Earnings

L3Harris Technologies, Inc. (LHX) is expected to announce its results for the third quarter of 2024 on October 24, after the market closes.

Stay updated with the latest earnings news through the Zacks Earnings Calendar.

L3Harris has demonstrated a consistent ability to surprise earnings, with an average surprise of 3.31% over the last four quarters. The anticipated strong performance across various business segments is likely to have positively impacted its earnings, even as higher interest expenses pose some challenges.

Performance of the IMS Unit

Strength in sales volume, particularly from the maritime sector, is expected to benefit the Integrated Mission Systems (IMS) segment. However, the commercial aviation business has seen reduced sales volume, which may have offset some of the gains.

The Zacks Consensus Estimate for IMS’ third-quarter revenues stands at $1,632.4 million, reflecting a 4.1% increase compared to the same quarter last year.

Boost from Other Units

Other segments are also projected to support overall revenue growth. The Space Systems and Intel & Cyber programs are anticipated to drive significant revenue increases within the Space and Airborne Systems (SAS) unit.

The Zacks consensus estimate for the SAS segment’s revenues is at $1,739.5 million, indicating a 3.2% improvement from the previous year’s figures.

Moreover, the Communication Systems unit is expected to benefit from substantial sales growth in both Tactical Communication and Broadband Communications.

The revenue estimate for this unit is expected to reach $1,353.3 million, suggesting a robust 7.8% growth from the year-ago quarter.

Overall Q3 Outlook for LHX

Given the strong growth anticipated in its major segments, L3Harris is positioned for a notable increase in total revenues this quarter. Additionally, the company is likely to see positive outcomes from its acquisition of Aerojet Rocketdyne.

The Zacks Consensus Estimate for third-quarter sales is projected at $5.30 billion, marking a 7.9% rise from the same period last year.

These solid sales projections should also enhance LHX's overall bottom line. Operating margins are expected to improve due to operational efficiencies, successful program deliveries, and cost-reduction strategies.

That said, the impact of rising interest expenses may slightly dampen overall earnings growth.

For Q3 2024, the consensus estimate for L3Harris's earnings stands at $3.26 per share, representing a 2.2% increase from last year.

Predictions Using the Zacks Model

The Zacks model indicates that L3Harris is likely to beat earnings expectations this quarter. The combination of a positive Earnings ESP and a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) enhances the likelihood of a positive earnings outcome, which applies to L3Harris, as discussed below.

Earnings ESP: L3Harris reports an Earnings ESP of +1.19%. This model can help identify the best stocks for potential earnings beats.

Zacks Rank: Currently, L3Harris holds a Zacks Rank of 3.

Other Noteworthy Stocks

Investors might also consider other companies within the same sector that are positioned well to meet or exceed earnings expectations in their upcoming reports.

Lockheed Martin (LMT) is set to release its third-quarter earnings on October 22, prior to market opening, holding an Earnings ESP of +1.29% and a Zacks Rank of 3. The consensus earnings estimate for LMT is $6.47 per share, while sales are projected at $17.28 billion, showing a 2.4% year-over-year increase.

Northrop Grumman (NOC) will also report its Q3 2024 results on October 24, before the market opens. With an Earnings ESP of +1.12% and a Zacks Rank of 2, Northrop is expected to report earnings of $6.06 per share and sales of $10.23 billion, a 4.7% rise from the last year.

Curtiss-Wright Corp. (CW) is slated to announce its third-quarter earnings on October 30, after market closure, with an Earnings ESP of +0.54% and a Zacks Rank of 1. The earnings estimate is $2.70, indicating a 6.3% improvement from last year, while sales are expected to reach $757 million, marking a 4.5% increase from the previous year’s figures.

Earnings, L3Harris, Q3