L3Harris Technologies, Inc. (NYSE: LHX) has reported mixed results for the fourth quarter of 2021 as earnings surpassed estimates but revenue lagged. The technology-oriented aerospace and defense company provides advanced defense and commercial technologies.
Adjusted earnings of $3.30 per share increased 5% year-over-year and came above the Street’s expectations of $2.86. Revenue during the quarter fell 7% year-over-year to $4.35 billion and missed analysts’ expectations of $4.66 billion.
The company reported a 1% drop in organic sales. Segment-wise, Integrated Mission Systems and Space & Airborne Systems revenues increased 6% and 2%, respectively, while Communication Systems and Aviation Systems sales fell 11% and 5%, respectively, in the fourth quarter.
The Vice-Chair and CEO of L3Harris, Christopher E. Kubasik, said, “The L3Harris team delivered solid EPS growth, consistent with expectations, despite supply chain headwinds and budget uncertainty. In 2022, we look forward to taking the next step as the industry’s trusted disruptor to deliver innovative and affordable solutions, and with a focus on creating value over the long term.”
For 2022, L3Harris expects revenues between $17.3 billion and $17.7 billion. Also, organic sales growth is anticipated to be in the range of 1% to 3%, and adjusted EPS is projected to be between $13.35 and $13.65.
The company expects to repurchase shares worth $1.5 billion in 2022. Further, L3Harris expects to post an adjusted EBIT margin of 19% to 19.25%.
Wall Street’s Take
Overall, the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 5 Buys and 2 Holds. The average L3Harris price target of $249.71 implies 14.2% upside potential to current levels.
TipRanks data shows that financial blogger opinions are 100% Bullish on LHX, compared to a sector average of 69%.
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