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L3Harris (LHX)

L3Harris Technologies is an agile global aerospace and defense technology innovator, delivering end-to-end solutions that meet customers' mission-critical needs. The company provides advanced defense and commercial technologies across air, land, sea, space and cyber domains. L3Harris has approximately $18 billion in annual revenue and 48,000 employees, with customers in more than 100 countries.

Company profile

Ticker
LHX
Exchange
CEO
William Brown
Employees
Incorporated
Location
Fiscal year end
Former names
HARRIS CORP /DE/
SEC CIK
Subsidiaries
(100% direct or indirect ownership by L3Harris Technologies, Inc. • 1231670 Ontario Inc. • 1297741B.C. Ltd. • Aerosim Bangkok Company Limited • Aerosim Thai Company Limited • Airline Placement Limited • Airline Recruitment Limited • Asia Flight Data Services Pte. Ltd. • Asian Aviation Training Centre Ltd. • Aviation Communication & Surveillance Systems, LLC ...
IRS number
340276860

LHX stock data

Analyst ratings and price targets

Last 3 months

Calendar

29 Apr 22
17 May 22
30 Dec 22
Quarter (USD) Apr 22 Dec 21 Oct 21 Jul 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Jan 21 Jun 19 Jun 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 402M 402M 402M 402M 402M 402M
Cash burn (monthly) 179.67M 47.83M (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 275.76M 73.42M n/a n/a n/a n/a
Cash remaining 126.24M 328.58M n/a n/a n/a n/a
Runway (months of cash) 0.7 6.9 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
23 Apr 22 Bailey Sallie B Common Stock, Par Value $1.00 Option exercise Acquire M No No 0 795.39 0 3,289.98
23 Apr 22 Bailey Sallie B 2021 Director Share Units Common Stock, Par Value $1.00 Option exercise Dispose M No No 0 795.39 0 0
23 Apr 22 Corcoran Thomas A Common Stock, Par Value $1.00 Option exercise Acquire M No No 0 795.39 0 2,097.98
23 Apr 22 Corcoran Thomas A 2021 Director Share Units Common Stock, Par Value $1.00 Option exercise Dispose M No No 0 795.39 0 0
23 Apr 22 Chiarelli Peter W Common Stock, Par Value $1.00 Option exercise Acquire M No No 0 795.39 0 3,097.98
23 Apr 22 Chiarelli Peter W 2021 Director Share Units Common Stock, Par Value $1.00 Option exercise Dispose M No No 0 795.39 0 0
23 Apr 22 Dattilo Thomas A Common Stock, Par Value $1.00 Option exercise Acquire M No No 0 795.39 0 5,097.98
23 Apr 22 Dattilo Thomas A 2021 Director Share Units Common Stock, Par Value $1.00 Option exercise Dispose M No No 0 795.39 0 0
22 Apr 22 Bailey Sallie B 2022 Director Share Units Common Stock, Par Value $1.00 Grant Acquire A No No 0 685 0 685
22 Apr 22 Corcoran Thomas A 2022 Director Share Units Common Stock, Par Value $1.00 Grant Acquire A No No 0 685 0 685
80.2% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 1175 1116 +5.3%
Opened positions 165 84 +96.4%
Closed positions 106 95 +11.6%
Increased positions 365 387 -5.7%
Reduced positions 445 438 +1.6%
13F shares Current Prev Q Change
Total value 32.97B 35.28B -6.6%
Total shares 154.62M 160.23M -3.5%
Total puts 501K 589.8K -15.1%
Total calls 305.73K 354.71K -13.8%
Total put/call ratio 1.6 1.7 -1.4%
Largest owners Shares Value Change
Vanguard 16.78M $3.58B -1.9%
Capital World Investors 14.87M $3.17B +24.3%
BLK Blackrock 12.28M $2.62B -3.7%
STT State Street 8.22M $1.75B -1.8%
Capital International Investors 5.94M $1.27B -31.2%
BAC Bank Of America 5.75M $1.23B +20.4%
WFC Wells Fargo & Co. 4.64M $988.74M -6.5%
Wellington Management 3.82M $813.53M +35.8%
JHG Janus Henderson 3.61M $769.85M -48.1%
TROW T. Rowe Price 3.43M $730.9M +0.3%
Largest transactions Shares Bought/sold Change
JHG Janus Henderson 3.61M -3.35M -48.1%
Capital World Investors 14.87M +2.91M +24.3%
Capital International Investors 5.94M -2.69M -31.2%
Norges Bank 1.52M +1.52M NEW
Millennium Management 1.23M +1.16M +1598.2%
Balyasny Asset Management 1.04M +1.04M NEW
Wellington Management 3.82M +1.01M +35.8%
BAC Bank Of America 5.75M +976.66K +20.4%
Alliancebernstein 380.67K -810.03K -68.0%
California Public Employees Retirement System 863.47K -734.42K -46.0%

Financial report summary

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Risks
  • The effects of COVID could have a material adverse effect on our business operations, financial condition, results of operations, cash flows and equity.
  • We depend significantly on U.S. Government contracts, which often are only partially funded, subject to immediate termination, and heavily regulated and audited. The termination or failure to fund, or negative audit findings for, one or more of these contracts could have an adverse impact on our business, financial condition, results of operations, cash flows and equity.
  • The U.S. Government’s budget deficit and the national debt, as well as any inability of the U.S. Government to complete its budget process for any government fiscal year and consequently having to shut down or operate on funding levels equivalent to its prior fiscal year pursuant to a “continuing resolution,” could have an adverse impact on our business, financial condition, results of operations, cash flows and equity.
  • Our results of operations and cash flows are substantially affected by our mix of fixed-price, cost-plus and time-and-material type contracts. In particular, our fixed-price contracts could subject us to losses in the event of cost overruns or a significant increase in inflation.
  • Our commercial aviation products, systems and services businesses are affected by global demand and economic factors that could negatively impact our financial results.
  • We cannot predict the consequences of future geo-political events, but they may adversely affect the markets in which we operate, our ability to insure against risks, our operations or our profitability.
  • We derive a significant portion of our revenue from international operations and are subject to the risks of doing business internationally, including fluctuations in currency exchange rates.
  • We are subject to government investigations, which could have a material adverse effect on our business, financial condition, results of operations, cash flows and equity.
  • We could be negatively impacted by a security breach, through cyber attack, cyber intrusion, insider threats or otherwise, or other significant disruption of our IT networks and related systems or of those we operate for certain of our customers.
  • Our future success will depend on our ability to develop new products, systems, services and technologies that achieve market acceptance in our current and future markets.
  • We must attract and retain key employees, and any failure to do so could seriously harm us.
  • Some of our workforce is represented by labor unions, so a prolonged work stoppage could harm our business.
  • Disputes with our subcontractors or key suppliers, or their inability to perform or timely deliver our components, parts or services, could cause our products, systems or services to be produced or delivered in an untimely or unsatisfactory manner.
  • We have significant operations in locations that could be materially and adversely impacted in the event of a natural disaster or other significant disruption.
  • Changes in estimates we use in accounting for many of our programs could adversely affect our future financial results.
  • Our level of indebtedness and our ability to make payments on or service our indebtedness and our unfunded defined benefit plans liability may materially adversely affect our financial and operating activities or our ability to incur additional debt.
  • A downgrade in our credit ratings could materially adversely affect our business.
  • The level of returns on defined benefit plan assets, changes in interest rates and other factors could materially adversely affect our financial condition, results of operations, cash flows and equity in future periods.
  • Changes in our effective tax rate may have an adverse effect on our results of operations.
  • We may not be successful in obtaining the necessary export licenses to conduct certain operations abroad, and Congress may prevent proposed sales to certain foreign governments.
  • Our reputation and ability to do business may be impacted by the improper conduct of our employees, agents or business partners.
  • The outcome of litigation or arbitration in which we are involved from time to time is unpredictable, and an adverse decision in any such matter could have a material adverse effect on our financial condition, results of operations, cash flows and equity.
  • Third parties have claimed in the past and may claim in the future that we are infringing directly or indirectly upon their intellectual property rights, and third parties may infringe upon our intellectual property rights.
  • We face certain significant risk exposures and potential liabilities that may not be covered adequately by insurance or indemnity.
  • Unforeseen environmental issues, including regulations related to GHG emissions or change in customer sentiment related to environmental sustainability, could have a material adverse effect on our business, financial condition, results of operations, cash flows and equity.
  • Strategic transactions, including mergers, acquisitions and divestitures, involve significant risks and uncertainties that could adversely affect our business, financial condition, results of operations, cash flows and equity.
  • Changes in future business or other market conditions could cause business investments and/or recorded goodwill or other long-term assets to become impaired, resulting in substantial losses and write-downs that would materially adversely affect our results of operations and financial condition.
Management Discussion
  • Revenue declined 10% in the first quarter of fiscal 2022 compared to the first quarter of fiscal 2021 from the impact of prior year divestitures that totaled $268 million, continued supply chain disruptions including impacts arising from electronic component shortages within Communication Systems, award timing and airborne program transitions. Gross margin decreased in the first quarter of fiscal 2022 compared to the first quarter of fiscal 2021 from volume effects across our business segments and supply chain disruptions. Gross margin as a percentage of revenue (“gross margin percentage”) was comparable.
  • See the “Discussion of Business Segment Results of Operations” discussion below in this MD&A for further information.
  • The decrease in engineering, selling and administrative (“ESA”) expenses and ESA expense as a percentage of revenue (“ESA percentage”) in the first quarter of fiscal 2022 compared with the first quarter of 2021 was primarily due to $10 million of lower amortization of identifiable intangible assets acquired as a result of the L3Harris Merger, $8 million decrease in “FAS/CAS pension adjustment” and $6 million of lower divestiture-related expenses as well as the absence of a $15 million charge related to a value added tax obligation and $29 million of costs related to divested businesses in the first quarter of 2021.

Content analysis

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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. freshman Avg
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