L3Harris Technologies, Inc. (NYSE: LHX) shares embarked on a modest ascent during the preceding trading session, recording a 2.01% increase, culminating at a closing price of $174.36. This uptick in the value of L3Harris stock was attributed to a favorable assessment by an analyst. On Monday, Raymond James upgraded its rating for LHX stock from “MARKET PERFORM” to “OUTPERFORM,” maintaining the target price at $210.
L3Harris (LHX) recently outperformed earnings expectations for the third quarter last week, capitalizing on the backdrop of escalating global military expenditures driven by geopolitical tensions. In addition, LHX, having finalized its acquisition of Aerojet in July, revised its annual projections for revenue and earnings to encompass the contributions of the rocket engine manufacturer.
The ongoing strife in Ukraine has generated a surged demand for weaponry, including artillery, man-portable anti-aircraft missiles, and an array of armaments. This heightened demand has translated into highly remunerative agreements for American defense firms, facilitated by the U.S. Department of Defense.
In light of that demand surge, L3Harris now expects that its annual revenues will fall within the bracket of $19.2 billion to $19.4 billion, with earnings spanning from $12.25 to $12.45 per share. The earlier projections by the company was revenues ranging from $18.0 billion to $18.3 billion and earnings ranging from $12.25 to $12.55 per share. Notably, L3Harris secured orders totaling $5.01 billion during the quarter ending on September 29.
Subsequent to the successful integration and testing of hardware and software, in readiness for delivery, L3Harris is now in the final stages of the checkout process for the four missile-tracking satellites designed for the Space Development Agency’s (SDA) tracking tranche 0. Once these satellites are launched, they will establish a robust, multi-tiered military satellite network geared toward missile warning and defense, highlighting the agility in adapting capabilities and solutions to address the ever-evolving threat landscape.
L3Harris is also experiencing positive developments attributable to initiatives aimed at enhancing supply chain resilience. Nonetheless, the complete recovery of the supply chain remains inconsistent. The company maintains close collaboration with its suppliers to mitigate potential future disruptions and has thus far been successful in addressing most of these challenges, thereby adapting to the evolving “new normal” within the realm of supply chain operations.
