On Monday, RBC Capital Markets adjusted its outlook on L3Harris Technologies (NYSE:LHX), a prominent aerospace and defense technology company. The firm increased the price target for L3Harris Technologies to $250.00, up from the previous target of $245.00, while reaffirming its Outperform rating on the stock.
L3Harris Technologies recently disclosed its first-quarter results for 2024, showcasing an adjusted earnings per share (EPS) of $3.06. This figure surpasses both the RBC Capital estimate of $2.90 and the consensus estimate of $2.91. Additionally, the company reported adjusted operating margins of 15.1% and raised its full-year 2024 guidance to above 15%, signaling a robust financial performance.
The improvement in the outlook for individual segment margins and growing confidence in cost-reduction measures were highlighted as key factors in the analyst's optimistic assessment. The company's deleveraging strategy is reported to be on course, and expectations for revenue and margin growth are increasing.
RBC Capital's maintained Outperform rating and the raised price target reflect a positive outlook for L3Harris Technologies' financial future. The firm's analysis indicates that the company's strategic initiatives are yielding positive results, with a clear trajectory for continued growth in the aerospace and defense sector.
InvestingPro Insights
Following RBC Capital Markets' positive outlook on L3Harris Technologies (NYSE:LHX), current InvestingPro data provides additional insights into the company's financial status. As of the last twelve months leading up to Q1 2024, L3Harris Technologies has demonstrated significant revenue growth of 15.66%, with the quarterly figure even slightly higher at 16.55%. This performance is underpinned by a robust gross profit margin of 26.27%. The company's market capitalization stands strong at $40.69 billion, with a price-to-earnings (P/E) ratio of 22.87 when adjusted for the last twelve months, suggesting a market recognition of its earnings potential.
InvestingPro Tips highlight that L3Harris Technologies has been consistent in rewarding shareholders, raising its dividend for an impressive 22 consecutive years and maintaining dividend payments for over half a century. Analysts have also revised their earnings upwards for the upcoming period, a testament to the company's growth trajectory. For investors seeking stability, it's noteworthy that the stock generally trades with low price volatility. With these factors in mind, readers interested in a deeper analysis can find additional InvestingPro Tips for L3Harris Technologies at https://www.investing.com/pro/LHX. There are currently 12 more tips available for those who wish to explore further, and using the coupon code PRONEWS24 will grant an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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