Plus   Neg

L3Harris Q1 Profit Down; Cuts 2020 Outlook

L3Harris Technologies Inc. (LHX) reported that its net income for the first-quarter net income attributable to the company declined to $217 million from $243 million last year. GAAP earnings per share was $0.99, down 51% versus prior-year.

GAAP earnings per share decreased 51% versus prior-year GAAP primarily due to an impairment of goodwill and other assets and other COVID-19 related charges, amortization of merger intangibles and a less favorable program mix, partially offset by productivity and integration savings.

GAAP earnings per share decreased 43% versus prior-year pro forma, hurt by the costs and charges, partially offset by higher volume, strong operational performance and integration savings.

Non-GAAP earnings per share was $2.80, up 21% versus prior-year adjusted pro forma.

Quarterly revenue was $4.6 billion, up 168% from last year, due to the post-merger inclusion of L3 operations in operating results. Revenue increased 5% versus prior-year pro forma from growth across the businesses.

Analysts polled by Thomson Reuters expected the company to report earnings of $2.62 per share and revenues of $4.59 billion for the quarter. Analysts' estimates typically exclude special items.

The company cuts its guidance for 2020 to reflect current expectations and assumptions regarding COVID-19-related risks.

The company now projects earnings per share in the range of $6.95 - $7.35 and non-GAAP earnings per share of $11.15 - $11.55. Earlier, the company expected earnings per share of $8.35 - $8.75, and non-GAAP earnings per share of $11.35 - $11.75.

The company now expects fiscal year 2020 revenue to be in a range of $18.3 billion - $18.6 billion, up organically 3% - 5% on an adjusted pro forma basis, primarily reflects downturn in commercial aerospace business, as well as some weakness in international and public safety demand and risks from supply chain disruptions. Previously, the company expected annual revenue to be up 5% - 7%.

Wall Street currently is looking for fiscal year 2020 earnings of $11.51 per share on annual revenues of $18.98 billion.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Polaris Industries Inc. is recalling certain Ranger and General Utility, as well as All-Terrain vehicles citing risks of crash, the U.S. Consumer Product Safety Commission said in a statement. The Medina, Minnesota-based company has called back about 26,730 units of Model Year 2019 - 2020 Ranger XP 1000 & Model Year 2020 General XP 1000 Utility vehicles. Gilead Sciences Inc. (GILD) said Friday that the European Commission has granted conditional marketing authorization for Veklury or remdesivir as a treatment for SARS-CoV-2 infection, the virus that causes COVID-19. FedEx is asking NFL team Washington Redskins to change its name for its racist connotations. The delivery services company, which is a major sponsor for the team, made the suggestion following increasing pressure from its investors amid the ongoing protests against racial injustice and inequality that arose from the killing of African-American George Floyd.
Follow RTT