L3Harris raises top end of 2024 adjusted earnings outlook amid global tensions

(Reuters) - L3Harris lifted the upper-end of its annual adjusted profit target on Thursday, betting on sustained weapons demand and robust defense spending amid escalating global security concerns.

U.S. defense companies are experiencing a surge in contracts as the Russia-Ukraine war, the Middle East crisis and the specter of Chinese aggression are driving demand, but growth is still hindered by pandemic-related labor and supply-chain disruptions.

Following the Aerojet buyout in 2023, L3Harris suspended its merger and acquisition activity for the "foreseeable future" in efforts to strengthen its balance sheet.

L3Harris also launched a review of its operational performance, cost structure and portfolio composition, which is expected to be completed by this year.

The company now expects the upper-end of its annual adjusted profit to be $13.05 per share, up from its previous guide of $12.80 per share.

Earlier this week, Reuters reported that L3Harris would cut 5% of its workforce this year as part of a cost saving measure, citing an email to employees.

Florida-based L3Harris posted an adjusted profit of $3.06 per share for the quarter ended March 31, compared with $2.86 per share a year earlier.

Its overall sales in the first-quarter rose 17% to $5.2 billion.

(Reporting by Pratyush Thakur, Nathan Gomes in Bengaluru; Editing by Alan Barona)