L3Harris Technologies Inc (NYSE:LHX) stock rose 7.57% (As on January 27, 11:48:11 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 22. The company posted total backlog growth of 5% versus prior year. Fourth quarter net income margin and segment operating margin contracted to 9.1% and 14.6%, respectively, primarily from labor transitions and higher input costs that impacted program performance and estimates at completion (EAC), as well as program mix. The company has returned $1.9 billion and $397 million to shareholders in share repurchases and dividends in 2022 and 4Q22, respectively. The company reported funded book-to-bill of 1.08x and 1.00x, for the full year and fourth quarter, respectively. All segments reported a book-to-bill above 1.0x for the year.
LHX in the fourth quarter of FY 22 has reported the adjusted earnings per share of $3.27, beating the analysts’ estimates for the adjusted earnings per share of $3.26. The company had reported the adjusted revenue growth of 5.3 percent to $4.58 billion in the fourth quarter of FY 22, beating the analysts’ estimates for revenue of $4.34 billion. This is driven by the Communication Systems and Space & Airborne Systems segments. The company has reported cash flow from operating activities of $782 million and adjusted free cash flow of $748 million. For the fourth quarter, IMS revenue decreased 2%, reflecting declines of $53 million for ISR from $110 million lower revenue on a NATO aircraft missionization program, partially offset by ramps on newly-awarded programs. For the fourth quarter, SAS revenue increased 7%, primarily driven by increases of $80 million in Space from a ramp on SDA Tracking, $25 million in Intel & Cyber from a ramp on classified programs and $6 million in airborne businesses due to an increase in F-35 TR3 production, partially offset by a decrease in legacy airborne programs.
L3Harris Technologies sees FY2023 EPS of $12.00-$12.50, versus the consensus of $12.40. L3Harris Technologies sees FY2023 revenue of $17.4B-17.8B, versus the consensus of $17.607B.
The company has succeeded in accelerating the strategic ViaSat Tactical Data Links (TDL) acquisition, closing the deal in approximately 90 days. Shortly before the TDL closing, the company has signed a definitive agreement to acquire Aerojet Rocketdyne (AJRD), a national asset providing rocket motors for critical defense munitions and space programs. These acquisitions will strengthen the trusted position as an industry leading merchant supplier, providing rapid and innovative solutions aligned with the National Defense Strategy, while creating long-term value for shareholders.