MELBOURNE, Fla. - L3Harris Technologies (NYSE:LHX) has announced a robust start to the first quarter of 2024, with earnings and revenue surpassing analyst expectations and a raised outlook for the year. The company reported adjusted earnings per share (EPS) of $3.06, which was $0.15 higher than the analyst estimate of $2.91. Revenue for the quarter reached $5.2 billion, exceeding the consensus estimate of $5.11 billion and marking a 17% increase from the same quarter last year.
The company's solid performance has led to an uptick in its stock price, which rose by 1.76% following the earnings release. This positive market response reflects investor confidence bolstered by the earnings and revenue beat, as well as guidance that exceeded consensus expectations.
L3Harris Technologies' first quarter results were driven by a combination of organic growth and the successful acquisition of Aerojet Rocketdyne, contributing to the overall revenue increase. The company's operating margin saw a slight dip to 7.3% due to higher implementation costs and intangible amortization from the acquisition. However, the adjusted segment operating margin expanded by 80 basis points to 15.1%, attributed to improved operational and program performance across its segments.
Christopher E. Kubasik, Chair and CEO of L3Harris, expressed confidence in the company's trajectory, stating, "We're off to a strong start to 2024, reporting solid revenue with higher operating margin across all four segments and our Trusted Disruptor strategy continues to drive demand for innovative, resilient and mission-critical solutions aligned with national security needs."
Looking ahead, L3Harris Technologies has increased its 2024 adjusted EPS guidance range from $12.40 - $12.80 to $12.70 - $13.05, which is above the analyst consensus of $12.72. This updated guidance reflects the company's expectation of continued growth and profitability, with an emphasis on operational rigor and structural enhancements from its LHX NeXt initiative.
The company's performance and optimistic outlook underscore its commitment to delivering value to shareholders and maintaining a strong position in the defense technology market. With a clear strategic direction and a focus on operational excellence, L3Harris Technologies is poised for sustained success in the coming year.
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