L3Harris Adjusts Guidance Down as Covid-19 Hits Aviation

By Matt Grossman

L3Harris Technologies Inc. on Tuesday revised down its revenue and earnings guidance for 2020, citing reduced demand during the Covid-19 pandemic.

The Melbourne, Fla.-based aerospace and defense company now expected revenue in a range of $18.3 billion to $18.6 billion for 2020, which would represent 3% to 5% organic growth on an adjusted basis. The company's previous guidance had anticipated earnings growth of 5% to 7%.

The change "primarily reflects downturn in commercial aerospace business, as well as some weakness in international and public-safety demand and risks from supply-chain disruptions," L3Harris said.

The company now expects adjusted earnings per share to be between $11.15 and $11.55 for the full year, down from a prior forecast of $11.35 to $11.75.

Analysts polled by FactSet had been expecting full-year revenue of $18.98 billion and adjusted earnings of $11.52 a share.

The company also now expects full-year GAAP earnings per share of $6.95 to $7.35, down from $8.35 to $8.75 previously.

L3Harris said that the large portion of its revenue that comes from U.S. government sales will remain in place, but that the company may face headwinds in its commercial and international business lines as the pandemic hits the aviation industry.

Write to Matt Grossman at matt.grossman@wsj.com

(END) Dow Jones Newswires

May 05, 2020 08:31 ET (12:31 GMT)

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