L3Harris Technologies (LHX) Tops Q4 EPS by 5c, Revenues Miss; Offers FY21 Revenue Guidance Below Consensus, FY21 EPS Mid-Point Outlook Below Consensus

L3Harris Technologies (NYSE: LHX) reported Q4 EPS of $3.14, $0.05 better than the analyst estimate of $3.09. Revenue for the quarter came in at $4.66 billion versus the consensus estimate of $4.89 billion.

• Fourth Quarter 2020 Results
  • Revenue of $4.7 billion, down 3.6% versus prior year; flat on an organic1 basis; funded book-to-bill of 0.93
  • Net income margin of 3.9%; adjusted earnings before interest and taxes (EBIT)2 margin of 18.5%
  • GAAP earnings per share from continuing operations (EPS) of $0.92, down 48%
  • Non-GAAP EPS2 of $3.14, up 10%
  • Operating cash flow of $698 million; adjusted free cash flow (FCF)2 of $642 million

"Thanks to the hard work of our employees we continued to deliver the benefits of the merger and ended the year with solid performance, exceeding our initial 2020 guidance for margins, EPS and free cash flow as we overcame headwinds due to the global pandemic," said William M. Brown, Chairman and Chief Executive Officer. "We’re clearly making progress in building a high-performance, technology-focused operating company and positioning L3Harris as a full end-to-end mission solutions prime. In 2021, we'll build on our momentum as we remain focused on meeting employee, customer and shareholder commitments."

GUIDANCE:

L3Harris Technologies sees FY2021 EPS of $12.60-$13.00, versus the consensus of $12.95. L3Harris Technologies sees FY2021 revenue of $18.5-18.9 billion, versus the consensus of $19.24 billion.

L3Harris initiated the following guidance for 2021:

• Revenue
  • $18.5 billion - $18.9 billion, up organically 3.0% - 5.0%
• Margin and earnings
  • GAAP net income margin of 10.8% - 11.1%
  • Adjusted EBIT margin of 18.0% - 18.5%
  • GAAP EPS of $9.80 - $10.11
  • Non-GAAP EPS of $12.60 - $13.00
• Cash flow and capital deployment
  • Operating cash flow and adjusted free cash flow of $3.1 billion - $3.2 billion and $2.8 billion - $2.9 billion, respectively
  • ~$2.3 billion in share repurchases, excluding use of divestiture proceeds

For earnings history and earnings-related data on L3Harris Technologies (LHX) click here.

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