), a leading supplier of communications equipment and services, is
set to report its fourth-quarter fiscal 2014 financial numbers on
July 29, 2014, before the opening bell.
Last quarter, the Harris reported a 6.72% positive earnings
surprise. Moreover, the company outpaced the Zacks Consensus
Estimate in all of the last four quarters. Let's see how things are
shaping up for Harris prior to this announcement.
Factors to Consider This Quarter
Harris expects revenues for fiscal 2014 to drop 2-3% from fiscal
2013, mainly due to weaker-than-expected demand for the company's
tactical radios. Rigid U.S. government spending for defense,
coupled with delays in several key international order
procurements, which have been postponed to early next year, has led
to such a tepid guidance.
For fiscal 2014, Harris raised its forecast for adjusted
earnings per share from continuing operations to $4.90-$5.00 from
the earlier projected $4.80-$4.90,mainly owing to 3% annual growth
in international military spending.
Our proven model does not conclusively show that Harrisis likely
to beat the Zacks Consensus Estimate this quarter. This is because
a stock needs to have both a positive
and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to
happen. Unfortunately, that is not the case here as elaborated
Zero Zacks ESP:
This is because both the Most Accurate estimate and the Zacks
Consensus Estimate are poised at $1.27. This leads to an ESP of
0.00% for Harris.
Harris has a Zacks Rank #3 when combined with a 0.00% ESP makes
surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing a negative estimate revision momentum.
Other Stocks to Consider
Here are some other companies to consider as our model shows
they have the right combination of elements to post an earnings
beat this quarter:
ViaSat Inc. (
) has an earnings ESP of +375% and carries a Zacks Rank #3.
CenturyLink, Inc. (
) has an earnings ESP of +1.56% and carries a Zacks Rank #3.
TIM Participacoes S.A. (
) has an earnings ESP of +16.67% and carries a Zacks Rank #1.
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
HARRIS CORP (HRS): Free Stock Analysis Report
CENTURYLINK INC (CTL): Free Stock Analysis
TIM PARTICP-ADR (TSU): Free Stock Analysis
VIASAT INC (VSAT): Free Stock Analysis Report
To read this article on Zacks.com click here.