L3Harris Technologies, Inc. (NYSE:LHX) Just Reported Third-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

Last week saw the newest quarterly earnings release from L3Harris Technologies, Inc. (NYSE:LHX), an important milestone in the company's journey to build a stronger business. The result was positive overall - although revenues of US$5.3b were in line with what the analysts predicted, L3Harris Technologies surprised by delivering a statutory profit of US$2.10 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for L3Harris Technologies

Taking into account the latest results, the most recent consensus for L3Harris Technologies from 21 analysts is for revenues of US$22.1b in 2025. If met, it would imply an okay 4.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 70% to US$10.81. Before this earnings report, the analysts had been forecasting revenues of US$22.1b and earnings per share (EPS) of US$10.71 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of US$267, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values L3Harris Technologies at US$324 per share, while the most bearish prices it at US$206. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that L3Harris Technologies' rate of growth is expected to accelerate meaningfully, with the forecast 3.6% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 1.4% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 3.9% per year. L3Harris Technologies is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$267, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on L3Harris Technologies. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for L3Harris Technologies going out to 2026, and you can see them free on our platform here..

Even so, be aware that L3Harris Technologies is showing 3 warning signs in our investment analysis , and 1 of those is a bit concerning...

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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.