(Reuters) – L3Harris raised its outlook for 2024 after beating Wall Street estimates for second-quarter profit on Thursday, betting on sustained weapons demand and robust defense spending amid escalating global security concerns.
The defense firm raised its 2024 adjusted profit forecast to be between $12.85 and $13.15 per share, up from its previous range of $12.70 to $13.05. Analysts were expecting $12.97 per share, according to LSEG.
The ongoing war in Ukraine has driven strong global demand for U.S. weaponry, with nations actively negotiating and securing deals to acquire arms and expedite existing contracts.
The U.S. Congress’s approval in April of an additional $95 billion in funding—including aid for replenishing U.S. stockpiles in Ukraine and Israel— has further benefited defense companies like L3Harris.
The defense contractor, formed by the merger of L3 Technologies and Harris Corp in 2019, counts the Pentagon, planemaker Boeing and defense and aerospace giant RTX among its customers.
Florida-based L3Harris posted an adjusted net income of $3.24 per share, exceeding Wall Street estimates of $3.18 per share.
L3Harris, along with Northrop, is one of the top two suppliers of sought-after rocket motors used in guided multiple-launch rocket systems, which have played a crucial role in Ukraine.
The company now expects revenue to be between $21.0 billion and $21.3 billion, up from its previous estimate of $20.8 billion to $21.3 billion. Overall sales rose 13% to $5.3 billion.
(Reporting by Pratyush Thakur and Aishwarya Jain in Bengaluru; Editing by Tasim Zahid)
