L3Harris Technologies (NYSE:LHX) reported first-quarter results on Thursday that exceeded analyst expectations, though shares edged lower in premarket trading as investors weighed the company’s updated outlook.
The stock dipped 0.79% ahead of the open following the announcement.
Adjusted earnings per share came in at $2.72, beating the consensus estimate of $2.52 by $0.20.
Revenue reached $5.7 billion, surpassing the $5.43 billion forecast and rising 12% from $5.1 billion in the same quarter last year.
Organic revenue increased 15% year-over-year, supported by growth across all business segments, driven by new program ramp-ups and stronger international demand.
The company raised its full-year EPS guidance to a range of $11.40 to $11.60, up from the prior range of $11.30 to $11.50. The midpoint of $11.50 compares with the previous midpoint of $11.40.
L3Harris maintained its full-year revenue outlook of $23 billion to $23.5 billion and reaffirmed its free cash flow target of $3.0 billion.
“We delivered a strong start to the year with robust orders and revenue growth coupled with progress across our strategic priorities,” said Chairman and CEO Christopher Kubasik.
Profitability also improved, with operating margin expanding by 120 basis points to 11.4%, while segment operating margin rose 10 basis points to 15.7%.
Orders totaled $7.8 billion during the quarter, representing a book-to-bill ratio of 1.4x and lifting backlog to a record $40.7 billion.
By segment, Space & Mission Systems revenue surged 24% to $3.0 billion, driven by increased activity in ISR programs across classified and international markets. Communication & Spectrum Dominance revenue rose 3% to $1.9 billion, while Missile Solutions revenue jumped 18% to $990 million on higher production volumes.