LH

L3Harris Technologies, Inc. stock research

Dec 29, 2023

FY2023 Q4

L3Harris Technologies (LHX) Gross Margin — Quarter Ended Dec 29, 2023

Revenue, gross profit, and cost of revenue all increased this quarter. Gross margin improved sequentially but weakened relative to the same period last year, reflecting a mixed performance.

Gross margin takeaway

Quarter ended Dec 29, 2023 · FY2023 Q4

Revenue, gross profit, and cost of revenue all increased this quarter. Gross margin improved sequentially but weakened relative to the same period last year, reflecting a mixed performance.

  • The sequential improvement in gross margin was accompanied by gross profit rising more quickly than revenue compared to the prior quarter.
  • Compared to the prior quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was slightly lower.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

27.2%

Gross profit

$1.5B

Revenue

$5.3B

Cost of revenue

$3.9B

Quarter-over-quarter change

+0.6 pts

Year-over-year change

-0.4 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$4.5B$1.2B$3.3B26.1%
Jun 30, 2023$4.7B$1.2B$3.5B25.3%
Sep 29, 2023$4.9B$1.3B$3.6B26.6%
Dec 29, 2023$5.3B$1.5B$3.9B27.2%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Sep 29, 2023

+0.6 pts

Year-over-year change

Dec 30, 2022

-0.4 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The sequential improvement in gross margin was accompanied by gross profit rising more quickly than revenue compared to the prior quarter.

Compared to the prior quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was slightly lower.

Monitor the relative growth rates of cost of revenue and revenue, as their divergence affects gross margin trends.

LHX Gross Margin — Quarter Ended Dec 29, 2023