1-Star Price
PREMIUM
5-Star Price
PREMIUM
Economic Moat
PREMIUM
Capital Allocation
PREMIUM
Narrow-moat-rated L3Harris Technologies reported a solid finish to fiscal 2020. Adjusted EPS grew 10.2% to $3.14 per share in the fourth quarter, beating FactSet consensus estimates by about 1.5%. We are lowering our fair value estimate by 2.5% to $198 per share to reflect higher than previously anticipated overhead expenses over the medium term.
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.
