L3Harris Technologies, Inc. (NYSE:LHX) Analysts Are Pretty Bullish On The Stock After Recent Results

It's been a good week for L3Harris Technologies, Inc. (NYSE:LHX) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.4% to US$269. The result was positive overall - although revenues of US$5.4b were in line with what the analysts predicted, L3Harris Technologies surprised by delivering a statutory profit of US$2.44 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following last week's earnings report, L3Harris Technologies' 18 analysts are forecasting 2025 revenues to be US$21.7b, approximately in line with the last 12 months. Per-share earnings are expected to increase 6.1% to US$9.63. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$21.6b and earnings per share (EPS) of US$9.40 in 2025. So the consensus seems to have become somewhat more optimistic on L3Harris Technologies' earnings potential following these results.

View our latest analysis for L3Harris Technologies

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 6.4% to US$291. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic L3Harris Technologies analyst has a price target of US$324 per share, while the most pessimistic values it at US$250. This is a very narrow spread of estimates, implying either that L3Harris Technologies is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the L3Harris Technologies' past performance and to peers in the same industry. The analysts are definitely expecting L3Harris Technologies' growth to accelerate, with the forecast 3.2% annualised growth to the end of 2025 ranking favourably alongside historical growth of 0.9% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.1% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, L3Harris Technologies is expected to grow slower than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards L3Harris Technologies following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that L3Harris Technologies' revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for L3Harris Technologies going out to 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for L3Harris Technologies you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.