SALT LAKE CITY - L3Harris Technologies (NYSE:LHX) has been awarded a contract by the U.S. Navy, potentially worth $587.4 million, to provide new tactical jamming pods over the next five years. The Next Generation Jammer - Low Band (NGJ-LB) system is set to enhance the Navy's Aerial Electronic Attack capabilities.
The NGJ-LB system, which represents a significant technological advancement in airborne electronic warfare, is expected to improve upon the Navy's current jamming systems with its advanced processing power and maintenance-friendly modular design. The open-system architecture of the L3Harris solution also allows for future upgrades, ensuring compatibility with joint and allied forces and the capacity to integrate emerging technologies.
L3Harris will supply the U.S. Naval Air Systems Command with eight operational prototype pods for fleet evaluation, along with additional assets for airworthiness and design verification. These pods are intended for deployment on the EA-18G Growler aircraft, as part of the Navy's initiative to replace the aging AN/ALQ-99 Tactical Jamming System.
Christopher E. Kubasik, Chair and CEO of L3Harris, expressed pride in the company's role in supporting the Navy's mission to maintain air superiority and seamless operation with coalition forces. The contract is a testament to L3Harris's commitment to providing digital, software-based technologies designed to counter advanced threats from peer adversaries.
L3Harris Technologies is known for its comprehensive technology solutions that span various domains, including space, air, land, sea, and cyber, all in the service of national security.
The press release from L3Harris Technologies included forward-looking statements, which are based on management's current expectations and are subject to various risks and uncertainties. The company notes that actual results may differ from those projected in the forward-looking statements due to these risks. This news is based on a press release statement from L3Harris Technologies.
In other recent news, L3Harris Technologies reported a 9% increase in non-GAAP earnings per share for the second quarter of 2024, alongside a substantial backlog of $32 billion. Additionally, the company celebrated the first anniversary of its acquisition of Aerojet Rocketdyne, noting performance improvements and increased investment. However, the company did not secure the High Accuracy Detection and Exploitation System contract from the US Army, despite its partnership with Leidos and MAG Aerospace. Jefferies reiterated a Buy rating for L3Harris, maintaining a stock price target of $275, while Morgan Stanley (NYSE:MS) downgraded the company's stock from Overweight to Equalweight. CEO Christopher E. Kubasik also established a trading plan for exercising stock options and selling the corresponding shares. JPMorgan (NYSE:JPM) recently increased its price target for L3Harris to $276, based on the company's solid quarterly performance and promising financial metrics. These are recent developments in the company's trajectory.
InvestingPro Insights
L3Harris Technologies (NYSE:LHX), a key player in the Aerospace & Defense industry, has recently secured a substantial contract with the U.S. Navy, emphasizing its strong position in the market. The financial health and growth prospects of L3Harris are reflected in several key metrics. The company boasts a solid market capitalization of $43.37 billion, underlining its significant presence in the industry.
From an investment standpoint, L3Harris is trading at a P/E ratio of 36.36, which adjusts to a more attractive 25.31 when considering near-term earnings growth. This suggests a potentially undervalued situation relative to its earnings trajectory, as indicated by the PEG ratio of 0.74 over the last twelve months as of Q2 2024. Additionally, the company has demonstrated a robust revenue growth of 15.44% during the same period, showing its capacity to expand its operations and increase its market share.
An InvestingPro Tip worth noting is that L3Harris has raised its dividend for 22 consecutive years, with a current dividend yield of 2.04%. This consistent performance in returning value to shareholders is a testament to its financial stability and disciplined capital allocation strategy. Moreover, analysts predict that the company will be profitable this year, which aligns with its history of profitability over the last twelve months.
For those interested in further insights, there are additional InvestingPro Tips available, including the fact that L3Harris is trading at a high earnings multiple and generally trades with low price volatility, which could be attractive for investors seeking stable returns. To explore these insights in more detail, potential investors can find more tips on https://www.investing.com/pro/LHX.
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