Why L3Harris Technologies Stock Is Plummeting Today

L3Harris Technologies (NYSE: LHX) stock is suffering a big pullback in Thursday's trading despite publishing a strong quarterly report yesterday. The company's share price was down 11% as of 11:35 a.m. ET -- a pullback that looks even more notable given that the S&P 500 was up 0.8% at the same point in the session.

L3Harris published its second-quarter results after the market closed yesterday, and it actually delivered sales and earnings that meaningfully exceeded the average Wall Street targets. Despite the strong Q2 print and some solid demand indicators, the stock is getting hit hard today.

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L3Harris recorded earnings per share of $3.13 in Q2, which beat the average analyst estimate's call for per-share earnings of $2.81 in the period. Meanwhile, revenue increased 8% year over year to reach $5.88 billion and beat the average analyst forecast by roughly $60 million. The company also reported that its order backlog had climbed to a record $42 billion.

Along with the encouraging Q2 report, the company also raised guidance for the full-year period. The company is now targeting sales between $23.2 billion and $23.7 billion for the year -- up from its previous guidance for sales between $23 billion and $23.5 billion. Earnings for the year are now projected to be between $11.80 per share and $12 per share -- up from management's previous target for per-share earnings between $11.40 and $11.60.

While L3Harris delivered strong Q2 results and forward guidance, the company paired the news with an announcement that it was delaying the planned spinoff and initial public offering (IPO) for its missile business to next year at the earliest. CEO Chris Kubasik said that stock market conditions had shifted in unfavorable directions, and that the company no longer saw an IPO for the missile business this year as being likely to reflect the value of the unit. With L3Harris seeing a big pullback following a strong quarterly report, today's sell-off could be a worthwhile buying opportunity.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends L3Harris Technologies. The Motley Fool has a disclosure policy.

Why L3Harris Technologies Stock Is Plummeting Today was originally published by The Motley Fool