LHX Earnings Prediction
The chart below shows how LHX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, LHX sees a -1.87% change in stock price 10 days leading up to the earnings, and a -0.67% change 10 days following the report. On the earnings day itself, the stock moves by +0.45%. This data can give you a slight idea of what to expect for the next quarter's release.
LHX Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
5.52B
3.43%
4.37%
Gross Margin
25.29%
-3.88%
-5.67%
Operating Margin
11.33%
0.18%
1.61%
Net Margin
8.26%
250.00%
8.26%
EPS
2.38
186.75%
13.33%
No Data Available
LHX Earnings Analysis
L3Harris Technologies Inc Corporation (LHX.N) Earnings Conference Call
Positive
Strong Revenue Performance: Revenue increased to $21.3 billion in 2024, reflecting a 10% growth and 4% organic growth, demonstrating strong overall performance.
Free Cash Flow Increase: Free cash flow grew to $2.3 billion, a 14% increase driven by earnings growth and effective working capital management, highlighting financial strength.
Segment Operating Margin Analysis: Segment operating margin for 2024 was 15.4%, supported by continued cost savings and strong execution, indicating operational efficiency.
Cost Savings Achievement: Achieved $800 million in gross cost savings through the LHX Next initiative, exceeding the target by 2x, and positioning for further savings in the future.
Projected EPS Growth: Non-GAAP EPS for 2024 was $13.10, with a projected growth of 10% for 2025, reflecting strong profitability and positive outlook.
Negative
Segment Revenue Decline: SAS segment revenue decreased by 4% year-over-year to $1,700,000,000, primarily due to the divestiture of the antenna business and lower F-35 related volumes.
SAS Segment Operating Margin: Operating margin for the SAS segment was 10.8%, reflecting challenges on some fixed-price development programs in space, which negatively impacted profitability.
2025 Revenue and Margin Outlook: The guidance for 2025 anticipates SAS revenue growth to only $6,900,000,000 to $7,100,000, with an expected operating margin in the low 12% range, indicating continued budgetary constraints in the space sector.
Project Execution Risks: In Q4, negative adjustments of approximately $100,000,000 were realized across a couple of classified space programs, highlighting ongoing risks in project execution.
Flat EAC Projections: The company expects flat EACs in 2025, indicating no projected improvement in program performance despite previous positive EACs in 2024, which may hinder overall financial results.
LHX FAQs
How does LHX typically perform around its earnings report dates?
Is L3Harris Technologies Inc (LHX) Q4 2024 Earnings Call Summary positive or negative?
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LHX Earning Call Sentiment
Earnings call transcript: L3Harris Q4 2024 beats EPS forecast, stock dips
LHX.N
2.95%Positive
Despite some risks, the earnings call presents a strong financial performance, with revenue growth, cost savings, and a substantial share repurchase plan. The strategic partnership with Palantir and optimistic guidance for 2026 further bolster the outlook. The Q&A did not reveal significant concerns from analysts, and the management's responses were generally positive. While regulatory and supply chain risks exist, the company's proactive strategies and strong financial metrics suggest a positive stock price movement in the short term.
