L3Harris Technologies Inc (NYSE:LHX) stock fell 0.74% (As on Feb 1, 11:51:00 AM UTC-4, Source: Google Finance) after the company posted mixed results for the fourth quarter of FY 21.

Integrated Mission Systems’ net revenues in the segment came in at $1,558 million, up 6% year over year, driven by growth in aircraft missionization on a NATO program and in Electro Optical from higher product deliveries. The operating income improved 24% year over year to $259 million while operating margin expanded 230 basis points (bps) to 16.6%. Space and Airborne Systems recorded net revenues of $1,286 million in the fourth quarter, up 2% year over year. This upside was driven by a ramp-up in missile defense and other responsive programs. Operating income decreased 4% to $235 million while operating margin contracted 120 bps to 18.3%. Communication Systems’ net revenues in the segment declined 11% to $1,018 million on account of product delivery delays from supply chain-related constraints mainly within Tactical Communications, lower volume on legacy platforms in Broadband Communications, contract roll-offs in Global Communications Solutions, and delivery timing within Integrated Vision Solutions. Operating income declined 15% to $253 million. Operating margin contracted 100 bps to 24.9%. Aviation Systems’ net revenues declined 37% to $535 million, primarily due to divestitures. Also, lower revenues from contract roll-offs and delayed awards within Defense Aviation, as well as lower FAA volume in Mission Networks contributed to the poor top-line performance. The segment reported an operating income of $77 million, down 39%. Operating margin contracted 50 bps to 14.4%.

LHX in the fourth quarter of FY 21 has reported the adjusted earnings per share of $3.30, beating the analysts’ estimates for the adjusted earnings per share of $3.25. For 2021, earnings were $12.95 per share, up 12% from the year-ago quarter. Moreover, 2021 earnings exceeded the Zacks Consensus Estimate of $12.92 by 0.2%. The company had reported 6.7 percent fall in the adjusted revenue to $4.35 billion in the fourth quarter of FY 21, missing the analysts’ estimates for revenue of $4.47 billion. The revenues in the reported quarter were primarily impacted by divestitures within Aviation Systems and supply chain-related constraints within Communication Systems. In 2021, total revenues declined 2% year over year to $17,814 million. Full-year revenues, however, missed the Zacks Consensus Estimate of $17,920 million by 0.6%. As of Dec 31, 2021, L3Harris had $941 million in cash and cash equivalents compared with $1,276 million as of Jan 1, 2021.