L3Harris Stock Edges Higher After 4Q Results

By Will Feuer

Shares of L3Harris Technologies Inc. edged higher in premarket trading after the defense contractor posted better-than-expected results for the fourth quarter, and said various pressures, including cost inflation and supply-chain challenges, are easing.

Shares rose about 3% to $202.44 in the premarket session. Over the past 12 months, the stock has fallen about 9%.

L3Harris posted fourth-quarter profit of $416 million, or $2.17 a share, down from $484 million, or $2.46 a share, in the same period a year earlier.

Adjusted earnings came to $3.27 a share, beating analyst estimates by a penny.

Revenue rose 6% on an organic basis to $4.58 billion, boosted by higher production in the Space & Airborne Systems and Communication Systems segments as supply-chain challenges eased. Analysts surveyed by FactSet were expecting revenue of $4.34 billion.

The company, which agreed last month to buy Aerojet Rocketdyne Holdings Inc. in a $4.7 billion all-cash deal, also issued 2023 guidance, which L3Harris said reflects easing supply-chain issues and plateauing cost inflation.

L3Harris guided for full-year revenue of $17.4 billion to $17.8 billion, up from $17.1 billion reported in 2022. Adjusted earnings are expected to fall to a range of $12 a share to $12.50 a share, down from the $12.90 a share reached in 2022.

In a letter to investors, the company said demand for L3Harris' products remains strong, driven by elevated geopolitical tensions in Asia and the Middle East, as well as the war between Russia and Ukraine.

Write to Will Feuer at [e-mail]

(END) Dow Jones Newswires

January 27, 2023 06:55 ET (11:55 GMT)

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