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L3Harris (LHX) to Report Q4 Earnings: What's in the Cards?

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L3Harris Technologies, Inc. LHX is scheduled to release fourth-quarter 2020 results on Jan 29, before the opening bell.

The company delivered an earnings surprise of 4.41% in the last reported quarter. Moreover, the company’s four-quarter average earnings surprise was 5.84%.

Let’s take a detailed look at some factors that may have influenced the company’s performance in the fourth quarter.

Factors at Play

Over the past few quarters, L3Harris has been witnessing growth in its Integrated Mission Systems revenues, primarily led by its maritime business on classified programs. We expect this trend to have continued during the fourth quarter and favorably contributed to the company’s operational results in the soon-to-be-reported quarter.

Moreover, production ramp up of the F-35 jets has been boosting the company’s Space and Airborne Systems unit’s growth, which is expected to have bolstered the fourth-quarter results as well. Additionally, the company’s Communication Systems segments’ top line can be projected to have benefited from consistent modernization demand for DoD tactical and integrated vision systems. With the majority of its segments expected to have performed impressively in the fourth quarter, the company’s total quarterly revenue figure should reflect a year-over-year improvement.

The Zacks Consensus Estimate for L3Harris’ fourth-quarter revenues is pegged at $4.88 billion, indicating an increase of 0.9% from the year-ago quarter’s reported figure.

During the third-quarter earnings call, the company anticipated exceeding its savings target of $185 million by 2020-end. This, in turn, is expected to have benefited the company’s bottom line in the fourth quarter. Moreover, we believe that L3Harris’ cost-management initiatives and operational efficiencies have boosted its margins, thereby benefiting its quarterly earnings.

The Zacks Consensus Estimate for L3Harris’ fourth-quarter earnings of $3.07 per share indicates growth of 7.7% from the year-ago quarter’s reported figure.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for L3Harris this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat but this is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

L3Harris has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell).

L3Harris Technologies Inc Price and EPS Surprise

L3Harris Technologies Inc Price and EPS Surprise
L3Harris Technologies Inc Price and EPS Surprise

L3Harris Technologies Inc price-eps-surprise | L3Harris Technologies Inc Quote

Stocks to Consider

Here are some defense companies you may want to consider, as these have the right combination of elements to post an earnings beat this season:

Triumph Group TGI has an Earnings ESP of +7.14% and a Zacks Rank #2. The company will announce fourth-quarter 2020 earnings on Feb 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Curtiss-Wright CW has an Earnings ESP of +1.50% and a Zacks Rank #3. The company will announce fourth-quarter 2020 earnings on Feb 24.

A Recent Defense Release

Hexcel Corporation HXL reported fourth-quarter 2020 loss of 18 cents per share, in line with the Zacks Consensus Estimate.

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L3Harris Technologies Inc (LHX) : Free Stock Analysis Report

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