Harman Hits a 52-Week High - Analyst Blog

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Shares of Harman International Industries ( HAR ) reached a new 52-week high of $88.47 on Friday, Jan 10, 2014. The bullish run reflects Harman's impressive product pipeline, solid patent portfolio and new business awards.

The closing price of Harman on Jan 10 was $88.28, representing a strong one-year return of about 76.1%. The S&P 500 jumped 25.3% during the same period.

Harman delivered a positive earnings surprise of 2.54% over the past four quarters. This Zacks Rank #2 (Buy) stock has a market cap of $5.96 billion and a long-term expected earnings growth rate of 20.5%.


Key Growth Catalysts

Harman continues to win new business awards. In the first quarter, the company's Infotainment division won customer awards worth $1.3 billion from the likes of Volkswagen, Daimler AG, Geely Motors, Mazda and Ssangyong Motor Company.

Lifestyle division won new awards from customers such as Toyota Motors ( TM ) , Lexus and BMW. The company also won an award to provide 4G connectivity solutions to the Mercedes-Benz car line worldwide. Harman started production on new Toyota programs in Europe during the first quarter.

During the second quarter (ended Dec 31, 2013), Harman completed the acquisition of Duran Audio, which will further expand its product portfolio, going forward.

Moreover, Harman continues to expand through its partnerships with the likes of Apple ( AAPL ) . We believe that the new restructuring program will significantly improve profitability in the near term. This will provide Harman a competitive edge over the likes of Sony Corp. ( SNE ) , going forward.

Estimate Revision

For the second quarter of 2014, the Zacks Consensus Estimate increased a penny to 97 cents over the past 60 days.

For fiscal 2013, the earnings estimate jumped 2 cents to $4.00 per share over the past 60 days. For fiscal 2014, the earnings estimate jumped 1.0% (5 cents) to $5.05 per share over the same period.



APPLE INC (AAPL): Free Stock Analysis Report

HARMAN INTL IND (HAR): Free Stock Analysis Report

SONY CORP ADR (SNE): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.




This article appears in: Investing , Business , Stocks

Referenced Stocks: AAPL , HAR , SNE , TM

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