Benzinga | Apr 30, 2021 08:48AM EDT

L3Harris Technologies Beats On Q1 Earnings, Issues Positive FY21 Guidance

* L3Harris Technologies Inc (NYSE: LHX) reported a first-quarter FY21 revenue decline of 1.3% year on year to $4.6 billion, above the analyst estimate of $4.54 billion. The revenue decline was due to divestitures and pandemic-related impacts on the commercial businesses.

* The organic revenue improved 1.8% as the U.S. and international government business growth more than balanced the expected pandemic-related decline.

* Integrated Mission Systems, Space and Airborne Systems, and Communication Systems segments posted growth of 5.9%, 3.7%, and 1.6%, respectively, partially offset by a pandemic-induced decline of 19% in Aviation Systems.

* Adjusted EBIT margin expanded 140 basis points to 18.9%.

* Non-GAAP EPS of $3.18 beat the analyst consensus of $2.94.

* The company generated $661 million in operating cash flow. It returned $700 million and $209 million to the shareholders via share buybacks and dividends, respectively.

* FY21 Guidance: L3Harris sees revenue between $18.5 billion and $18.9 billion, in line with the analyst consensus of $18.8 billion. Non-GAAP EPS guidance raised from the previous guidance of $12.60 - $13.00 to the $12.70 - $13.00, in line with the analyst consensus of $12.93.

* Price action: LHX shares closed higher by 2.05% at $209.22 on Thursday.