L3Harris Technologies delivers mixed Q4 2021 results

L3Harris Technologies Inc. (NYSE: LHX) has reported its Q4 and fiscal 2021 results and issued fiscal 2022 financial guidance.

In the fourth quarter, the company reported revenue of $4.4 billion, a 7% drop compared to Q4 2020 and down 1% on an organic basis. For the full year, the company reported revenue of $17.8 billion, a 2% drop from a year ago but a 2% increase on an organic basis. Revenues dropped because of divestitures in the Aviation Systems and supply chain-related issues within the Communication Systems segment.

Q4 2021 earnings top estimates

The company reported a Q4 net income margin of 11.1% and GAAP earnings per share of $2.46. Non-GAAP adjusted earnings margin was 19.2%, and non-GAAP EPS was $3.3, beating consensus estimates of $2.86. The increase in non-GAAP EPS was driven by integration benefits, e2 performance, low share count, and expenses management but this was offset partially offset by divesture and supply chain-related impacts. 

For a full year, the company had a GAAP net income margin of 10.35 and GAAP EPS of $9.09, while GAAP adjusted earnings before interest and taxes margin was 19.1% while non-GAAP EPS was $12.95 representing a 125 increase. The increase was driven by integration benefits, e3 performance, and lower share count, which offset high R&D investments, supply chain, and divesture related impacts.

Vice-Chair and Chief Executive Officer Christopher E. Kubasik commented:

L3Harris expects revenue of $17.3 billion to $17.7 billion

L3Harris also finalized the divestitures of the Narda-MITEQ and ESSCO operations, generating $130 million in total revenues in the quarter, contributing to $2.8 billion in total proceeds following the post-merger portfolio structuring.

For fiscal 2022 the company has issued guidance with a revenue range of $17.3 billion to $17.7 billion with organic growth of between 1% and 3%. As a result, the company expects fiscal 2022 GAAP earnings per share to range from $10.75 to $11.05 with non-GAAP earnings per share of $13.35 to $2.25 billion.