L3Harris Technologies, Inc. (NYSE: LHX) reported fourth-quarter 2020 revenue of $4.7 billion, down 3.6% versus the prior year, and flat on an organic basis. GAAP net income was $184 million, down 54% versus the prior year. Adjusted EBIT was $864 million, up 3.5% versus the prior year, and adjusted EBIT margin expanded 120 basis points (bps) to 18.5%. GAAP EPS was $0.92, down 48%, and non-GAAP EPS was $3.14, up 10% versus prior year.
Net income margin of 3.9%; adjusted earnings before interest and taxes (EBIT) margin of 18.5% in Fourth Quarter 2020.
Net income margin of 6.0%; adjusted EBIT margin of 18.0% in Full Year 2020.
Fourth quarter GAAP EPS decreased 48% versus prior year primarily due to charges for the impairment of intangibles, goodwill and other assets related to the commercial aviation business and other COVID-related impacts. These charges and other impacts were partially offset by operational excellence, integration benefits, cost management, a decrease in integration costs and a lower share count. Non-GAAP EPS increased 10% versus prior year driven by operational excellence, integration benefits, cost management and a lower share count, partially offset by COVID and divestiture-related impacts. Net income margin contracted 440 bps and adjusted EBIT margin expanded 120 bps to 18.5% versus prior year.
Full-year GAAP EPS decreased 34% versus prior year primarily due to charges for impairment of goodwill and other assets and other COVID-related impacts, higher amortization of acquisition-related intangibles, divestitures and a higher share count. This decline was partially offset by the inclusion of L3 operations in results for the full year in 2020 compared with only the second half in 2019, operational excellence, integration benefits, cost management and a decrease in integration costs. Full-year non-GAAP EPS increased 13% versus prior year driven by operational excellence, integration benefits, cost management and a lower share count, net of COVID and divestiture-related impacts. Net income margin contracted 450 bps and adjusted EBIT margin expanded 120 bps to 18.0% versus prior year.
Source: www.l3harris.com
