L3Harris reveals upgraded rocket motor in missile defense test

MELBOURNE, Fla. - L3Harris Technologies (NYSE: LHX), a prominent player in the Aerospace & Defense industry with a market capitalization of $39.7 billion and annual revenue of $21.3 billion, has successfully tested an advanced solid rocket motor called eSR-19, which was featured in a recent Missile Defense Agency (MDA) exercise. According to InvestingPro data, the company has demonstrated strong growth with revenue increasing by 9.8% over the last twelve months. The test, known as Flight Test Other-40 or Stellar Banshee, showcased the motor’s capabilities by powering the first and second stages of an air-launched Medium Range Ballistic Missile (MRBM) target vehicle.

During the Stellar Banshee exercise, the USS Pinckney demonstrated its ability to detect and track an advanced hypersonic target. The scenario included the simulated launch of an upgraded Standard Missile 6 at the MRBM target, which was equipped with a Hypersonic Target Vehicle 1 front end.

Ken Bedingfield, President of Aerojet Rocketdyne at L3Harris, highlighted the significance of the eSR-19 motor, stating that it enhances the company’s air-launch system and allows the target missile to more accurately represent a broader range of threats. This development provides the MDA with additional flexibility in creating test scenarios for missile defense.

The eSR-19 is an improvement over the SR-19, which is currently used in the second stage of the United States’ Minuteman III strategic missiles. Notable upgrades include a lighter filament-wound composite case, contributing to the motor’s enhanced performance.

This successful mission marks the 39th launch by L3Harris in support of the U.S. missile defense program. The company, known for its role as a "Trusted Disruptor" in the defense industry, provides technology solutions that span space, air, land, sea, and cyber domains, prioritizing national security.

The press release also contains forward-looking statements regarding the company’s expectations and projections for future performance, which are subject to risks and uncertainties that could cause actual results to differ. L3Harris has maintained a strong financial position, with InvestingPro analysis showing 23 consecutive years of dividend raises and a current dividend yield of 2.26%. For investors seeking deeper insights, L3Harris is among the 1,400+ US equities covered by comprehensive Pro Research Reports, offering detailed analysis and actionable intelligence.

This news is based on a press release statement from L3Harris Technologies. Based on InvestingPro’s Fair Value analysis, the stock currently appears to be trading below its intrinsic value, potentially presenting an opportunity for investors interested in the defense sector.

In other recent news, L3Harris Technologies reported its quarterly financial results, showcasing a revenue of $5.5 billion, which matched market expectations. The company’s adjusted earnings per share were $3.47, slightly surpassing the consensus estimate of $3.42. Citi analysts, while maintaining a Buy rating, adjusted their price target for L3Harris to $285 from $291 following these results. L3Harris also announced an increase in its quarterly dividend from $1.16 to $1.20 per share, marking the 24th consecutive annual dividend raise. Additionally, CEO Christopher E. Kubasik has set up a pre-arranged stock trading plan under SEC Rule 10b5-1 to facilitate the sale of employee stock options. This plan is designed to ensure compliance with insider trading regulations. These developments reflect L3Harris’s ongoing strategic efforts to manage costs and enhance shareholder returns.

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