L3Harris Reports Strong Third Quarter 2020 Results and Raises Outlook
03/11/2020
$4.5 billion, up 0.7% versus prior year
Up 4.4% on an organic1 basis; funded book-to-bill of 1.02
3Q20 margin and earnings
Net income margin of 9.6%; adjusted earnings before interest and taxes (EBIT)2 margin of 17.9%
GAAP earnings per share from continuing operations (EPS) of $1.99, up 4.7%
Non-GAAP EPS2 of $2.84, up 10%
3Q20 cash flow
Operating cash flow of $757 million; adjusted free cash flow (FCF)2 of $726 million
Narrowed revenue and increased EBIT margin, EPS and adjusted FCF2 guidance for 2020
MELBOURNE, Fla. - L3Harris Technologies, Inc. (NYSE:LHX) reported third quarter 2020 revenue of $4.5 billion, up 0.7% versus prior year, and up 4.4% on an organic1 basis. GAAP net income was $430 million, down 1.1% versus prior year. Adjusted EBIT2 was $798 million, up 4.2% versus prior year, and margin expanded 60 basis points (bps) to 17.9%. GAAP EPS was $1.99, up 4.7%, and non-GAAP EPS2 was $2.84, up 10% versus prior year.
The L3Harris team delivered a strong quarter that demonstrated integration progress, portfolio resiliency and the perseverance of our employees, said William M. Brown, Chairman and Chief Executive Officer. Our on-going execution puts us in a position to deliver on an improved outlook for the year, which well build on over the medium term.
Summary Financial Results
Third Quarter
($ millions, except per share data)
2020
2019
Change
(GAAP to GAAP comparison)
Revenue
$
4,463
$
4,431
0.7%
Net income
$
430
$
435
(1.1%)
Net income margin
9.6
%
9.8
%
(20)bps
EPS
$
1.99
$
1.90
4.7%
(Non-GAAP to non-GAAP comparison)2
Revenue
$
4,463
$
4,431
0.7%
Adjusted EBIT
$
798
$
766
4.2%
Adjusted EBIT margin
17.9
%
17.3
%
60bps
EPS
$
2.84
$
2.58
10%
Year-To-Date
($ millions, except per share data)
2020
2019
Change
(GAAP to GAAP comparison)
Revenue
$
13,534
$
8,024
69%
Net income
$
902
$
946
(4.7%)
Net income margin
6.7
%
11.8
%
(510)bps
EPS
$
4.27
$
6.13
(30%)
(GAAP to pro forma comparison)3
Revenue
$
13,534
$
13,265
2.0%
Net income
$
902
$
1,251
(28%)
Net income margin
6.7
%
9.4
%
(270)bps
EPS
$
4.27
$
5.48
(22%)
(Non-GAAP to adjusted pro forma comparison) 2,3
Revenue
$
13,534
$
13,265
2.0%
Adjusted EBIT
$
2,416
$
2,204
9.6%
Adjusted EBIT margin
17.9
%
16.6
%
130bps
EPS
$
8.47
$
7.41
14%
Revenue for the quarter increased 0.7% versus prior-year GAAP as 3.3% growth in core U.S. and international businesses was offset by the divestiture of the airport security and automation business and COVID-19-related impacts, mainly for commercial-related sales. Organic revenue increased 4.4% for the quarter as 7.4% growth in core U.S. and international businesses, excluding commercial aviation and Public Safety, more than offset the anticipated decline from the pandemic. At the segment level, revenue growth was driven by Integrated Mission Systems, Space and Airborne Systems and Communication Systems, partially offset by a decline in Aviation Systems due to COVID-19-related impacts.
GAAP EPS for the quarter increased 4.7% versus prior year driven by operational excellence, integration benefits, a decrease in integration costs and lower share count, partially offset by impacts from the pandemic, higher investments and amortization of merger-related intangibles, as well as the absence of a prior-year benefit from the gain on the sale of the Harris Night Vision business. Third quarter non-GAAP EPS increased 10% versus prior year driven by the favorable factors noted above, partially offset by the impacts of the pandemic and higher investments. Net income margin contracted 20 bps and adjusted EBIT margin expanded 60 bps to 17.9% versus prior year.
Segment Results
Integrated Mission Systems
Third Quarter
($ millions)
2020
2019
Change
(GAAP to GAAP comparison)
Revenue
$
1,372
$
1,292
6.2%
Operating income
$
213
$
176
21%
Operating margin
15.5
%
13.6
%
190bps
Year-To-Date
($ millions)
2020
2019
Change
(GAAP to GAAP comparison)
Revenue
$
4,073
$
1,317
n/m
Operating income
$
638
$
182
n/m
Operating margin
15.7
%
13.8
%
190bps
(GAAP to pro forma comparison)
Revenue
$
4,073
$
3,894
4.6%
Operating income
$
638
$
503
27%
Operating margin
15.7
%
12.9
%
280bps
n/m: Not meaningful
Third quarter revenue increased 6.2% from strong growth in Maritime from a ramp in manned and classified platforms, and in ISR driven by aircraft missionization demand, partially offset by a moderate decline in Electro Optical due to program timing. Third quarter operating income increased 21% to $213 million, and operating margin expanded 190 bps to 15.5% versus prior year, driven by operational excellence and integration benefits, partially offset by higher investments.
Segment funded book-to-bill was 1.08 for the quarter and 1.22 year-to-date.
Orders strength in ISR continued with several international awards totaling $123 million, including an award to provide ISR capabilities on three King Air 350ER aircraft for the Canadian Department of National Defence (DND) and an order to deliver a missionized Gulfstream G550 aircraft to the Royal Australian Air Force (RAAF).
In Electro Optical, sensor demand remained strong with a $37 million sole-source IDIQ award for thermal sight systems and equipment in support of the U.S. Marine Corps Assault Amphibious Vehicle. The company also reinforced its international position with a $54 million order for WESCAM airborne turrets from a European customer.
In Maritime, the companys investment in unmanned capabilities led to a $35 million award from the U.S. Navy as the prime system integrator for the Medium Unmanned Surface Vehicle (MUSV) program, which with options could reach $281 million. The company was als
LINK: | https://www.l3harris.com/newsroom/press-release/2020/10/l3harris-repor... |
See more stories from harris |
Most recent headlines
04/08/2024
Dalet Appoints Santiago Solanas as CEO to Lead Next Era of Growth and Innovation
Dalet, a leading technology and service provider for media-rich organizations, is excited to announce Santiago Solanas as its new Chief Executive Officer (CEO)....
03/06/2024
Dalet and Veritone Reach Agreement to Distribute, Transact and Monetize Media Archives
Dalet, a leading technology and service provider for media-rich organizations, a...
02/06/2024
AE add 3D motion to still photographs
AE add 3D motion to still photographs Brie Clayton June 2, 2024 0 Comments AE add 3D motion to still photographs May 30, 2024COW Featured Resume: Pa...
01/06/2024
How Spotify is Protecting Election Integrity in 2024
Dustee Jenkins, Chief Public Affairs Officer, Spotify With billions of people from over 50 countries heading to the polls to cast their vote, 2024 is shaping u...
01/06/2024
TV Tech Weekly Product News Wrap-Up
Busy this week catching up from the Memorial Day holiday? Our TV Tech weekly wrap-up of all our coverage of new products, services and deployments will get you ...
01/06/2024
Guy Ritchie Behind Young Sherlock' Series on Prime Video
Young Sherlock, with Guy Ritchie directing and executive producing, is a go at Prime Video. Hero Fiennes Tiffin plays Sherlock. Prime Video calls it the origin...
01/06/2024
Caitlin Clark-Cameron Brink WNBA Matchup Draws 724,000 Viewers
The Los Angeles Sparks-Indiana Fever game on Friday featuring the top two WNBA draft picks, Caitlin Clark and Cameron Brink, was the most watched WNBA game on I...
01/06/2024
Lionsgate Names Brian Weinstein Co-CEO of 3 Arts Entertainment
Lionsgate, which increased its majority stake in 3 Arts Entertainment in January, said it named Brian Weinstein co-CEO of 3 Arts....
01/06/2024
Netflix to Launch Video Games For Perfect Match', Too Hot to Handle', Other Unscripted Hits
Netflix is launching four video games based on unscripted series this year. They...
01/06/2024
Broadcast Networks Go Live for Donald Trump Verdict
ABC, CBS, NBC and Fox affiliates switched from their regular programming to carry live coverage of the verdicts in the porn star hush-money trial of former Pres...
31/05/2024
Orange County Expansion Helps Aerojet Rocketdyne Boost Solid Rocket Motor Production
A U.S. Marine fires an FIM-92 Stinger missile during a training exercise in Yuma...
31/05/2024
IAB Tech Lab Expands Open Measurement SDK Capabilities to Support Samsung and LG TVs
NEW YORK The global body that sets technical standards for digital advertising h...
31/05/2024
Study: Max, Apple TV+ Have Fewest 'Committed Customers'
In a new analysis of what services might make up a good bundle and what services might benefit the most from bundling, Antenna has released new data that highli...
31/05/2024
Report: Older SVOD Subscribers Unfazed by Price Hikes Will Drive Revenue Growth
Global SVOD revenues will increase by $116.6 billion by 2031, a growth rate of 13.3% per year over the next eight years, according to a new report from MIDiA Re...
31/05/2024
FCC Media Bureau Incorporates 2020 Census Data into TVStudy Software
WASHINGTON, D.C. The FCC Media Bureau has announced that effective August 1, 2024 the Commission's TVStudy software will incorporate the most recent U.S. Ce...
31/05/2024
NBCU's FAST Channel TNBC to Rebrand as NBC Comedy Vault
NBCUniversal has announced that its FAST channel TNBC will be rebranding to NBC Comedy Vault on June 1 and that the free streaming service will officially launc...
31/05/2024
TVRI Taps Ateme for Transition to 4K UHD OTT Streaming
PARIS Ateme has announced that the Indonesian public broadcaster TVRI is making the transition to 4K UHD OTT streaming using Ateme technologies....
31/05/2024
Marlow Film Studios considering next steps' as council blocks plans
The proposal had received support from James Cameron, Andy Serkis, Paul Greengrass, Richard Curtis, and Jeremy Irons By Matthew Corrigan Published: May 31, 2...
31/05/2024
Skydance submits new Paramount Global bid, Sony talks still progressing'
According to multiple reports, the new bid from Skydance offers a better deal to Paramounts Class B shareholders, who were said to be unhappy with the companys ...
31/05/2024
2024 Rise Awards open for entries
The awards recognise women and companies who are stand-out performers, innovators and leaders in the broadcast media technology industry By Matthew Corrigan ...
31/05/2024
Samsung, LG Adopt IAB Software Kit for CTV Ad Measurement
NEW YORK The global body that sets technical standards for digital advertising has expanded the reach of its measurement software development kit to include Sam...
31/05/2024
The Old Investment Cycles of Broadcast Technology are Being Run Over'
The rise of digital platforms is fundamentally changing the broadcast newsroom and its investment in technology according to Jon Roberts, director of technology...
31/05/2024
Study: Max, Apple TV Have Fewest 'Committed Customers'
In a new analysis of what services might make up a good bundle and what services might benefit the most from bundling, Antenna has released new data that highli...
31/05/2024
State Broadcasters Urge Passage of Broadcast VOICES Act
WASHINGTON, D.C. Fifty state broadcasters associations, including the District of Columbia and the Commonwealth of Puerto Rico, have sent a letter to Congressio...
31/05/2024
EVS Names Richard Katz SVP Operations for NALA region
EVS has announced the appointment of Richard Katz as senior vice president of operations for the North and Latin American (NALA) region. This appointment is par...
31/05/2024
CommScope to Buy Cable Business Assets of Casa Systems for $45.1M
CommScope has announced that it was selected by Casa Systems, Inc. as the highest to acquire Casa's cable business assets and that the two companies have en...
31/05/2024
NAB Withdraws De Niro's Service Award
Robert De Niro won't be receiving the Service to America Leadership Award from the NAB Leadership Foundation after all....
31/05/2024
Viant Integrates With Google Cloud's BigQuery Clean Rooms
Viant Technology said it formed an integration with Google Cloud's BigQuery data clean rooms...
31/05/2024
The CW To Broadcast Snoop Dogg Arizona Bowl
The CW said it will broadcast the 2024 Snoop Dogg Arizona Bowl presented by Gin & Juice by Dre and Snoop Last year, The CW aired the game when it was called Bar...
31/05/2024
Allen Media Makes Carriage Deal With Amazon Fire Channels
Allen Media Group said it made a deal with Amazon's Fire TV Channel that will make content from several of Allen's outlet available via Fire TV and Echo...
31/05/2024
Robert De Niro Will Not Receive Service to America Award
Robert De Niro, announced as the winner of the NAB's Leadership Foundation's Service to America Leadership Award on May 28, will not get the award. The ...
31/05/2024
Comcast Technology Solutions To Manage Channels for AccuWeather
Comcast Technology Solutions was selected by AccuWeather to create, manage and distribute linear and over-the-top video channels....
31/05/2024
Attention to Connected TV Ads Grew in Q1, TVision Study Finds
Connected TV is becoming a bigger deal for consumers and advertisers, according to a new report from TVision....
31/05/2024
A Guitar Solo Trick You've Never Heard Before
By Craig Anderton Let's get right to what this sounds like. It's not quite feedback or tape reverse, it's well, listen to what it does in this blue...
31/05/2024
VEON discloses April YTD trading update at its AGM
31 May 2024 VEON discloses April YTD trading update at its AGM Amsterdam, 31 May 2024 07:00 CEST - VEON April YTD 2024 Highlights Total revenue of USD 1,278 ...
31/05/2024
VEON Announces Its New Board, Names Founder Augie Fabela as Chairman
31 May 2024 VEON Announces Its New Board, Names Founder Augie Fabela as Chairman Amsterdam, 31 May 2024, 16.00 CET: VEON Ltd. (NASDAQ: VEON, Euronext Amsterdam...
31/05/2024
Tribeca Festival and Open AI Announce Sora Shorts
May 31st, 2024 TRIBECA FESTIVAL AND OPEN AI ANNOUNCE SORA SHORTS' Five Commissioned Short Films Created Using Sora Debut at 2024 Tribeca Festival New ...
31/05/2024
In-Venue Technology Wrap-Up: How 4K, IP, and More are Changing the Game Pres Game
In-Venue Technology Wrap-Up: How 4K, IP, and More are Changing the Game Pres Gam...
31/05/2024
UEFA Champions League Final 2024: The Facts and Figures Behind This Weekend's Knockout Between Real Madrid CF and Borussia Dortmund
UEFA Champions League Final 2024: The host broadcast facts and figures for Real ...
31/05/2024
UEFA Europa Conference League Final 2024: Bringing the Broadcast to Global TV Screens With the Production Facts
UEFA Europa Conference League Final 2024: Bringing the broadcast to global TV sc...
31/05/2024
Willow Offers Free 2024 ICC T20 Cricket World Cup Preview via DirecTV, Verizon, Optimum
Willow Offers Free 2024 ICC T20 Cricket World Cup Preview via DirecTV, Verizon, ...
31/05/2024
Women's College World Series: ESPN Brings Live Drone, Two-Point Cabled, and Cinematic On-Field Cameras to Oklahoma City
Women's College World Series: ESPN Brings Live Drone, Two-Point Cabled, and ...
31/05/2024
SVG College Summit Brings Video-Production Industry Together in Atlanta in the Midst of Unprecedented Change
SVG College Summit Brings Video-Production Industry Together in Atlanta in the M...
31/05/2024
UEFA Champions League Final 2024: CBS Sports' UCL Today Studio Show Is Pitchside at Wembley Stadium
UEFA Champions League Final 2024: CBS Sports' UCL Today Studio Show Is Pitch...
31/05/2024
Master of the House' Unveils a Scandalous Tale of Power and Greed on July 18
Back to All News Master of the House' Unveils a Scandalous Tale of Power and Greed on July 18 Entertainment 31 May 2024 GlobalThailand Link copied to ...
31/05/2024
JEEtu Bhaiya is Back: Kota Factory' Season 3 Arrives on Netflix June 20
Back to All News JEEtu Bhaiya is Back: Kota Factory' Season 3 Arrives on Netflix June 20 Entertainment 31 May 2024 GlobalIndia Link copied to clipboar...
31/05/2024
Thales has completed the sale of its Ground Transportation Systems business
Facebook Twitter LinkedIn With around 9,000 employees, Ground Transportation Systems is a global leader in Rail Signaling and Train Control Systems, Telec...
31/05/2024
RT 2FM is the home of music this summer
RT 2FM is the home of music this summer, entertaining listeners across the day and night, with the best music, chat and interviews providing the soundtrack to ...
31/05/2024
NVIDIA Grace Hopper Superchip Accelerates Murex MX.3 Analytics Performance, Reduces Power Consumption
After the 2008 financial crisis and increased risk-management regulations that f...