L3Harris Technologies Stock Drops Despite Strong Q2 Earnings and Guidance
Despite reporting strong second-quarter results that exceeded Wall Street expectations, L3Harris Technologies (NYSE: LHX) stock fell sharply on Thursday. The company reported earnings per share of $3.13—beating estimates—and revenue rose to $5.88 billion, also surpassing forecasts by about $60 million. It raised its full-year sales and earnings guidance as well. The significant drop in the stock price is attributed not to poor performance but rather a strategic decision announced alongside the results: L3Harris delayed the spinoff and IPO of its missile business until next year at the earliest due to unfavorable market conditions. CEO Chris Kubasik stated that an IPO this year would likely undervalue the unit. The stock was down 10.67% as of midday, contrasting with a positive S&P 500 performance.
Tickers: $LHX