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Dec 31, 2021

L3Harris Q4 2021 Earnings Report

L3Harris reported Q4 2021 results, with EPS growth consistent with expectations, despite supply chain headwinds and budget uncertainty.

Key Takeaways

L3Harris Technologies reported a decrease in revenue by 7% compared to the prior year, with a GAAP EPS of $2.46 and non-GAAP EPS of $3.30. The company initiated its 2022 financial guidance.

Q4 revenue was $4.4 billion, down 7% versus prior year, and down 1% on an organic basis.

Q4 GAAP net income margin of 11.1%, and GAAP earnings per share from continuing operations (EPS) of $2.46.

Q4 non-GAAP adjusted earnings before interest and taxes (EBIT) margin of 19.2%, and non-GAAP EPS of $3.30.

Funded book-to-bill was 0.90 for the quarter.

Total Revenue
$4.35B
Previous year: $4.66B
-6.7%
EPS
$3.3
Previous year: $3.14
+5.1%
Gross Profit
$1.3B
Previous year: $1.35B
-3.8%
Cash and Equivalents
$941M
Previous year: $824M
+14.2%
Free Cash Flow
$687M
Previous year: $147M
+367.3%
Total Assets
$34.7B
Previous year: $38.3B
-9.5%

L3Harris

L3Harris

L3Harris Revenue by Segment

Forward Guidance

L3Harris initiated 2022 guidance as follows: Revenue $17.3 billion - $17.7 billion, Organic revenue growth up 1.0% - 3.0%, Segment operating margin 16.00% - 16.25%, L3Harris GAAP net income margin 12.00% - 12.25%, L3Harris adjusted EBIT margin 19.00% - 19.25%, GAAP EPS $10.75 - $11.05, Non-GAAP EPS $13.35 - $13.65, Operating cash flow $2.4 billion - $2.5 billion, Adjusted free cash flow $2.15 billion - $2.25 billion, R&D tax impact $600 million - $700 million, Share repurchases ~$1.5 billion

Revenue & Expenses

Visualization of income flow from segment revenue to net income