L3Harris Technologies Shares Climb 3% After Surpassing Q3 Expectations and Raising Forecasts

L3Harris Technologies (NYSE:LHX) reported third-quarter results that surpassed expectations and raised its year-end forecasts, leading to a 3.2% rise in the company's shares during after-hours trading on Thursday. The defense company posted an adjusted earnings per share of $3.34, exceeding analysts' expectations of $3.25. Revenue increased by 8% year-over-year to $5.3 billion, slightly above the anticipated $5.28 billion.

L3Harris experienced strong demand for communication equipment and night vision devices, particularly from NATO countries. The company's book-to-bill ratio for the quarter was an impressive 1.4x. CEO Christopher E. Kubasik stated, "We delivered strong third-quarter results characterized by an extraordinary book-to-bill ratio of 1.4x, robust organic growth, and continued improvement in our profit margins."

For the full year 2024, L3Harris raised its adjusted earnings per share forecast from the prior range of $12.85-$13.15 to $12.95-$13.15. Additionally, it narrowed its revenue forecast from the $21.0-$21.3 billion range to $21.1-$21.3 billion.

The company announced that it will exceed its 2024 cost-saving target of $400 million, aiming for at least $600 million. L3Harris also intends to achieve its annual $1 billion savings target a year early. Kubasik added, "Our initiatives offer additional cost-saving opportunities exceeding the $1 billion target, bolstering our confidence in achieving at least a 16% segment operating margin by 2026."