L3Harris Raises Profit and Revenue Forecasts

(Reuters) – L3Harris increased the lower end of its annual profit and revenue forecasts on Thursday, anticipating ongoing demand for weapons and strong defense spending amid rising global security issues.

Shares rose 3.6% after the announcement.

Geopolitical tensions have favored arms manufacturers such as Lockheed Martin (NYSE:LMT), RTX, and Northrop Grumman (NYSE:NOC), all of which have also enhanced their 2024 earnings forecasts.

The company now projects 2024 adjusted profit between $12.95 and $13.15 per share, up from the previous estimate of $12.85 to $13.15 per share.

Revenue is now expected to range from $21.1 billion to $21.3 billion, an increase from the earlier forecast of $21.0 billion to $21.3 billion.

The ongoing conflict in Ukraine has significantly boosted global demand for U.S. weaponry, with countries actively seeking to negotiate deals to acquire arms and expedite ongoing contracts.

L3Harris and Northrop are the leading suppliers of in-demand rocket motors, utilized in guided multiple-launch rocket systems crucial to supporting Ukraine's defense efforts against Russian forces.

For the quarter ending September 27, L3Harris reported an adjusted profit of $3.34 per share, surpassing analysts' expectations of $3.26 per share, according to LSEG data.

The Florida-based company's overall quarterly sales climbed 8% to $5.29 billion, compared to analysts' estimate of $5.28 billion.