L3Harris Technologies, Inc. stock research
FY2024 Q2
L3Harris Technologies (LHX) Gross Margin — Quarter Ended Jun 28, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Cost of revenue also rose, resulting in a gross margin that was slightly lower than the prior quarter but higher than the year-ago quarter.
Gross margin takeaway
Quarter ended Jun 28, 2024 · FY2024 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Cost of revenue also rose, resulting in a gross margin that was slightly lower than the prior quarter but higher than the year-ago quarter.
- The gross margin improved relative to the same quarter one year earlier, with gross profit increasing at a faster pace than revenue.
- Compared to the immediately preceding quarter, gross margin weakened slightly as revenue increased while cost of revenue remained nearly unchanged. Compared to the same quarter last year, gross margin improved as revenue and gross profit both grew, with cost of revenue rising less proportionally.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
25.7%
Gross profit
$1.4B
Revenue
$5.3B
Cost of revenue
$3.9B
Quarter-over-quarter change
-0.2 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.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Sep 29, 2023 | $4.9B | $1.3B | $3.6B | 26.6% |
| Dec 29, 2023 | $5.3B | $1.5B | $3.9B | 27.2% |
| Mar 29, 2024 | $5.2B | $1.3B | $3.9B | 25.9% |
| Jun 28, 2024 | $5.3B | $1.4B | $3.9B | 25.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 29, 2024
-0.2 pts
Year-over-year change
Jun 30, 2023
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved relative to the same quarter one year earlier, with gross profit increasing at a faster pace than revenue.
Compared to the immediately preceding quarter, gross margin weakened slightly as revenue increased while cost of revenue remained nearly unchanged. Compared to the same quarter last year, gross margin improved as revenue and gross profit both grew, with cost of revenue rising less proportionally.
Monitor net EAC adjustments, which had no impact on earnings this quarter compared to a negative impact in the prior year quarter, as they can affect reported profitability.