L3Harris Technologies, Inc. stock research
FY2024 Q3
L3Harris Technologies (LHX) Gross Margin — Quarter Ended Sep 27, 2024
Revenue and cost of revenue were both higher than the same quarter last year, with gross profit also higher, resulting in a slightly improved gross margin. Sequentially, revenue and cost of revenue were stable, yet gross margin improved as gross profit held steady relative to cost.
Gross margin takeaway
Quarter ended Sep 27, 2024 · FY2024 Q3
Revenue and cost of revenue were both higher than the same quarter last year, with gross profit also higher, resulting in a slightly improved gross margin. Sequentially, revenue and cost of revenue were stable, yet gross margin improved as gross profit held steady relative to cost.
- The strongest observable margin driver is the combination of net favorable contract adjustments (EAC) and increased revenue recognized from performance obligations satisfied in prior periods, as noted in the filing.
- Compared to the prior quarter, gross margin improved while revenue and gross profit were essentially unchanged. Versus the same quarter a year ago, revenue and gross profit were higher, and gross margin was slightly higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
26.8%
Gross profit
$1.4B
Revenue
$5.3B
Cost of revenue
$3.9B
Quarter-over-quarter change
+1.1 pts
Year-over-year change
+0.2 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 |
|---|---|---|---|---|
| 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% |
| Sep 27, 2024 | $5.3B | $1.4B | $3.9B | 26.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 28, 2024
+1.1 pts
Year-over-year change
Sep 29, 2023
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the combination of net favorable contract adjustments (EAC) and increased revenue recognized from performance obligations satisfied in prior periods, as noted in the filing.
Compared to the prior quarter, gross margin improved while revenue and gross profit were essentially unchanged. Versus the same quarter a year ago, revenue and gross profit were higher, and gross margin was slightly higher.
Monitor backlog trends, as remaining performance obligations represent future revenue that may influence margin performance.