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L3Harris Technologies Inc LHX

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L3Harris Posts Solid Q2; Increasing Fair Value to $208

Burkett Huey, CFA Equity Analyst

Analyst Note

| Burkett Huey, CFA |

Narrow-moat-rated L3Harris reported a solid second quarter as the company begins to complete its multiyear process of integrating L3 Technologies into the firm. Sales of $4.7 billion beat FactSet consensus by 0.9%, and EPS of $3.26 beat FactSet consensus by 2.7%. We are increasing our fair value estimate to $208 per share from $207 as we increase our long-term outlook for merger-related synergies, but this was mostly offset by Morningstar’s assumption of higher corporate taxes after 2021.

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Company Profile

Business Description

L3Harris Technologies was created in 2019 from the merger of L3 Technologies and Harris, two defense contractors that provide products for the command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) market. The firm also has smaller operations serving the civil government, particularly the Federal Aviation Administration’s communication infrastructure, and produces various avionics for defense and commercial aviation.

Contact
1025 West NASA Boulevard
Melbourne, FL, 32919
T +1 321 727-9100
Sector Industrials
Industry Aerospace & Defense
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 48,000

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