Company profile

Ticker
LHX
Exchange
CEO
William M. Brown
Employees
Incorporated in
Location
Fiscal year end
Former names
Harris Corp
SEC CIK
IRS number
340276860

LHX stock data

(
)

Calendar

7 May 20
15 Jul 20
1 Jan 21

News

Company financial data Financial data

Quarter (USD) Apr 20 Jan 20 Sep 19 Jun 19
Revenue 4.63B 4.83B 4.43B 1.87B
Net income 194M 399M 435M 268M
Diluted EPS 0.99 1.77 1.9 2.21
Net profit margin 4.19% 8.26% 9.82% 14.37%
Operating income* 312M 530M 501M
Net change in cash -161M -177M 471M 196M
Cash on hand 663M 824M 1B 530M
Cost of revenue 3.3B 3.48B 3.24B 1.22B

Financial data from L3Harris earnings reports. *Asterisk values are approximate.

Date Owner Security Transaction Code 10b5-1 $Price #Shares $Value #Remaining
1 Jul 20 Dana A Mehnert Phantom Stock Units Common Stock, Par Value $1.00 Discretionary Aquire I No 170.49 74.59 12.72K 1,397.9
1 Jul 20 Sean J Stackley Phantom Stock Units Common Stock, Par Value $1.00 Discretionary Aquire I No 170.49 31.41 5.36K 35.74
1 Jul 20 Millard Robert B Phantom Stock Units Common Stock, Par Value $1.00 Grant Aquire A No 170.49 241.95 41.25K 475.82
1 Jul 20 Edward J Zoiss Phantom Stock Units Common Stock, Par Value $1.00 Discretionary Aquire I No 170.49 51.04 8.7K 829.18
10 Jun 20 Corcoran Thomas A Common Stock, Par Value $1.00 Sell Dispose S No 206.17 1,500 309.26K 20,167
84.3% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 1043 1059 -1.5%
Opened positions 112 182 -38.5%
Closed positions 128 102 +25.5%
Increased positions 408 380 +7.4%
Reduced positions 372 339 +9.7%
13F shares
Current Prev Q Change
Total value 306.86B 326.86B -6.1%
Total shares 182.84M 184.08M -0.7%
Total puts 786.3K 767.49K +2.5%
Total calls 734.5K 519.19K +41.5%
Total put/call ratio 1.1 1.5 -27.6%
Largest owners
Shares Value Change
Vanguard 19.28M $3.47B +2.5%
BLK BlackRock 16.66M $3B -3.2%
STT State Street 9.22M $1.66B -1.3%
N Price T Rowe Associates 8.39M $1.51B -15.1%
Capital Research Global Investors 8.22M $1.48B +17.9%
JHG Janus Henderson 7.1M $1.28B +3.3%
WFC^Z Wells Fargo & Company 5.04M $907.82M +1.6%
Artisan Partners Limited Partnership 4.71M $848.51M -2.0%
FMR 4.34M $781.41M +12.4%
Clearbridge Advisors 3.89M $700.72M -9.4%
Largest transactions
Shares Bought/sold Change
Norges Bank 0 -2.06M EXIT
Capital International Investors 3.1M +2.02M +186.3%
N Price T Rowe Associates 8.39M -1.49M -15.1%
Wellington Management 3.21M -1.47M -31.4%
Citadel Advisors 1.97M -1.45M -42.3%
Soroban Capital Partners 1.29M +1.29M NEW
Capital Research Global Investors 8.22M +1.25M +17.9%
Alliancebernstein 2.09M +1.01M +93.6%
Brown Advisory 2.09M +858.78K +69.6%
Millennium Management 212.18K -635.82K -75.0%

Financial report summary

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Risks
  • We depend on U.S. Government customers for a significant portion of our revenue, and the loss of these relationships, a reduction in U.S. Government funding or a change in U.S. Government spending priorities could have an adverse impact on our business, financial condition, results of operations and cash flows.
  • 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 and cash flows.
  • 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 and cash flows.
  • Our ability to successfully manage ongoing business and organizational changes could impact our business results.
  • 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.
  • We use estimates in accounting for many of our programs, and changes in our estimates could adversely affect our future financial results.
  • 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.
  • The level of returns on defined benefit plan assets, changes in interest rates and other factors could affect our financial condition, results of operations and cash flows in future periods.
  • 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.
  • Disputes with our subcontractors or the inability of our subcontractors to perform, or our key suppliers to 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.
  • Our reputation and ability to do business may be impacted by the improper conduct of our employees, agents or business partners.
  • 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 participate in markets that are often subject to uncertain economic conditions, which makes it difficult to estimate growth in our markets and, as a result, future income and expenditures.
  • 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.
  • Strategic transactions, including mergers, acquisitions and divestitures, involve significant risks and uncertainties that could adversely affect our business, financial condition, results of operations and cash flows.
  • 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 and cash flows.
  • 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.
  • Changes in our effective tax rate may have an adverse effect on our results of operations.
  • Our level of indebtedness and our ability to make payments on or service our indebtedness and our unfunded defined benefit plans liability may 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.
  • Unforeseen environmental issues could have a material adverse effect on our business, financial condition, results of operations and cash flows.
  • 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 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 adversely affect our results of operations.
  • 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 our business could be harmed in the event of a prolonged work stoppage.
  • We may fail to realize all of the anticipated benefits of the L3Harris Merger or those benefits may take longer to realize than expected. We may also encounter significant difficulties in integrating the businesses.
  • Certain business uncertainties arising from the L3Harris Merger could adversely affect our businesses and operations.
  • We have incurred and will incur direct and indirect costs as a result of the L3Harris Merger.
Management Discussion
  • As discussed further in Note A — Significant Accounting Policies and Recent Accounting Standards in the Notes, we completed the L3Harris Merger on June 29, 2019. Because of the L3Harris Merger, the quarter ended April 3, 2020 reflects the results of the combined company, while the quarter ended March 29, 2019 reflects the results of only Harris operating businesses. Due to the significance of the L3 operating businesses included in the combined company results following the L3Harris Merger, the reported results for the quarter ended April 3, 2020 and quarter ended March 29, 2019 generally are not comparable. Therefore, to assist with a discussion of the April 3, 2020 and March 29, 2019 consolidated results of operations on a more comparable basis, certain supplemental unaudited pro forma combined income statement information prepared in accordance with the requirements of Article 11 of Regulation S-X (referred to in this MD&A as “pro forma”) also is provided (see “Supplemental Unaudited Pro Forma Condensed Combined Income Statement Information” below in this MD&A).
Content analysis ?
Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
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