L3Harris Reports Fourth Quarter and 2020 Results; Initiates 2021 Guidance
L3Harris Technologies reported Q4 2020 revenue of $4.66 billion, a decline of 3.6% year-over-year, primarily due to divestitures and COVID-related impacts. GAAP net income fell 54% to $184 million, with a GAAP EPS of $0.92, down 48%. However, adjusted EBIT rose by 3.5% to $864 million, with margins expanding to 18.5%. In FY 2020, revenue increased 42% to $18.19 billion, but net income decreased by 19%. The company emphasizes operational excellence and cost management while facing challenges from the pandemic and commercial aviation sector.
- Adjusted EBIT increased 3.5% to $864 million.
- Adjusted EBIT margin improved 120 bps to 18.5%.
- Non-GAAP EPS rose 10% to $3.14.
- Q4 revenue decreased 3.6% year-over-year.
- GAAP net income dropped 54% to $184 million.
- GAAP EPS fell 48% to $0.92.
- Full year 2020 net income declined 19% to $1.086 billion.
L3Harris Technologies, Inc. (NYSE:LHX) reported fourth quarter 2020 revenue of
"Thanks to the hard work of our employees we continued to deliver the benefits of the merger and ended the year with solid performance, exceeding our initial 2020 guidance for margins, EPS and free cash flow as we overcame headwinds due to the global pandemic," said William M. Brown, Chairman and Chief Executive Officer. "We’re clearly making progress in building a high-performance, technology-focused operating company and positioning L3Harris as a full end-to-end mission solutions prime. In 2021, we'll build on our momentum as we remain focused on meeting employee, customer and shareholder commitments."
Summary Financial Results
Fourth Quarter 2020 Results:
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Fourth Quarter |
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($ millions, except per share data) |
2020 |
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2019 |
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Change |
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(GAAP to GAAP comparison) |
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Revenue |
$ |
4,660 |
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$ |
4,832 |
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( |
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Net income |
$ |
184 |
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$ |
399 |
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( |
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Net income margin |
3.9 |
% |
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8.3 |
% |
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(440) bps |
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EPS |
$ |
0.92 |
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$ |
1.77 |
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( |
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(Non-GAAP to non-GAAP comparison)2 |
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Revenue |
$ |
4,660 |
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$ |
4,832 |
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( |
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Adjusted EBIT |
$ |
864 |
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$ |
835 |
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Adjusted EBIT margin |
18.5 |
% |
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17.3 |
% |
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120 bps |
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EPS |
$ |
3.14 |
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$ |
2.85 |
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(Organic revenue comparison)1 |
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Organic revenue |
$ |
4,660 |
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$ |
4,672 |
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—% |
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Fourth quarter revenue decreased
Fourth quarter GAAP EPS decreased
Full Year 2020 Results:
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Full Year |
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($ millions, except per share data) |
2020 |
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2019 |
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Change |
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(GAAP to GAAP comparison) |
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Revenue |
$ |
18,194 |
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$ |
12,856 |
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Net income |
$ |
1,086 |
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$ |
1,345 |
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( |
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Net income margin |
6.0 |
% |
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10.5 |
% |
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(450) bps |
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EPS |
$ |
5.19 |
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$ |
7.90 |
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( |
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(GAAP to pro forma comparison)3 |
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Revenue |
$ |
18,194 |
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$ |
18,097 |
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Net income |
$ |
1,086 |
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$ |
1,650 |
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( |
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Net income margin |
6.0 |
% |
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9.1 |
% |
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(310) bps |
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EPS |
$ |
5.19 |
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$ |
7.25 |
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( |
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(Non-GAAP to adjusted pro forma comparison) 2,3 |
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Revenue |
$ |
18,194 |
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$ |
18,097 |
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Adjusted EBIT |
$ |
3,280 |
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$ |
3,039 |
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Adjusted EBIT margin |
18.0 |
% |
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16.8 |
% |
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120 bps |
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EPS |
$ |
11.60 |
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$ |
10.26 |
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(Organic revenue comparison)1 |
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Organic revenue |
$ |
18,194 |
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$ |
17,677 |
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FAQ
What were LHX's Q4 2020 financial results?
L3Harris reported Q4 2020 revenue of $4.66 billion, down 3.6% from the previous year, with a GAAP net income of $184 million, down 54%.
How did LHX's adjusted EBIT perform in Q4 2020?
Adjusted EBIT for Q4 2020 was $864 million, representing a 3.5% increase from the prior year.
What is the trend in LHX's EPS for Q4 2020?
GAAP EPS dropped 48% to $0.92, while non-GAAP EPS increased 10% to $3.14.
How did LHX perform in the full year 2020?
For the full year 2020, L3Harris reported revenue of $18.19 billion, a 42% increase, but net income decreased by 19%.
L3Harris Technologies, Inc.
NYSE:LHXLHX RankingsLHX Latest NewsLHX Stock Data
46.83B
188.98M
0.32%
85.91%
0.86%
Aerospace & Defense
Search, Detection, Navagation, Guidance, Aeronautical Sys
United States of America
MELBOURNE
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