L3Harris Raises High-End 2024 Adjusted Earnings Forecast Amid Global Tensions

L3Harris (LHX.N) raised the upper end of its annual adjusted profit target on Thursday, banking on sustained demand for weaponry and robust defense spending amidst escalating global security tensions.
U.S. defense firms are witnessing a surge in contracts amid the Russia-Ukraine conflict, the crisis in the Middle East, and concerns over Chinese aggression, driving demand. However, growth continues to be hampered by pandemic-related labor and supply chain disruptions.
Following the acquisition of Aerojet in 2023, L3Harris paused its merger and acquisition activities for the “foreseeable future” to fortify its balance sheet.
L3Harris also initiated a review of its operational performance, cost structure, and portfolio composition, expected to conclude this year.
The company now anticipates its annual adjusted profit upper end to reach $13.05 per share, up from its previous guidance of $12.80 per share.
Earlier this week, Reuters reported that L3Harris plans to reduce its workforce by 5% this year as part of cost-saving measures, citing an internal email to employees.
Based in Florida, L3Harris reported an adjusted profit of $3.06 per share for the quarter ending March 31, compared to $2.86 per share in the previous year. Overall sales in the first quarter increased by 17% to $5.2 billion.