L3Harris Technologies Inc. (NYSE: LHX) has confirmed its quarterly earnings release date, which is expected to be on Monday, January 31, 2022, before the market opens.
What to look for
Earnings: Stockearning’s Estimated EPS for Q4 2021 is expected to be $3.25 per share. In the last quarter, the company reported earnings of $3.21 per share, producing an earnings surprise of 1.58% versus estimates. During the same quarter a year ago, the company had EPS of $2.84. For the full year 2021, the company expects to report EPS of $13, and guidance for FY2022 is pegged at between $12.85 and $13. Historical EPS performance shows that in the past 12 quarters, the company has topped estimates in all 12 quarters.
Revenue: L3Harris expects revenue of $4.47 billion compared to sales of $4.66 billion in the same quarter a year ago, suggesting a YoY drop of 4.1%. In the last quarter, the company had sales of $4.23 billion missing in estimates of $4.52 billion. For the full year, the company expects to post revenue of $17.92 billion, and for FY2022, the company is predicting sales of $18.18 billion.
Stock Movement: LHX shares have lost 1.5% since the company released its third-quarter earnings. Interestingly, LHX shares have been UP 8 times out of the past 12 quarters. So, the historical price reaction suggests a 66% probability of the share price going UP once the company reports its fiscal Q4 2021 earnings. According to the Stockearning algorithm, the predicted first-day move is 3%, while the predicted move on the seventh day is 4%.
What analysts are saying
Wolfe Research analyst Michael Maugeri upgraded LHX from Hold to Buy and set a [rice target of $266 as part of his 200 defense sector coverage. Maugeri is "market weight the space but incrementally more positive given an amplifying threat environment," as well as a better outlook on the Department of Defense budget.
Wells Fargo analyst Matthew Akers also upgraded LHX stock from Hold to Buy and raised his price target from $243 to $254. Akers sees a well-matched portfolio to US defense priorities with minimal single-program risks that are trading at a discount relative to peers.
Baird analyst Peter Arment upgraded LHX from Hold to Buy but maintained his price target of $248. The analyst cited discounts to other defense prime contractors and said that LHX is his top pick in the industry. Arment noted that most defense equities are resetting with budgets peaking, and he sees considerable value in some stocks in the sector. The analyst said Maxar Technologies was his other top stock pick and a Fresh Pick for 2022.
Recently UBS analyst Myles Walto downgraded the stock from Buy to Hold and slashed the price target from $260 to $235 as part of his wider research note on the US Defense and Aerospace sector. Walton noted that although geopolitical tensions are growing, he sees the growth rates in the defense sector slowing and believes that LHX's capital return and free cash flow conversion seem to have peaked.
Related News
McDonald’s Corporation (NYSE: MCD) Earnings Expectation, Q4 2021 EPS of $2.31
Boeing Company (NYSE: BA) Earnings Expectation, Earnings of $0.15 Driven By Solid Commercial And Defense Deliveries