), a leading supplier of communications equipment and services,
is scheduled to report its second-quarter fiscal 2014 results on
Jan 28, before the market opens. In the previous quarter the
company reported a 4.42% earnings surprise. Let's see how things
are shaping up for this announcement.
Why a Likely Positive Surprise?
Our proven model shows that Harris is likely to beat earnings
because it has the right combination of two key ingredients.
, which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate, stands at +2.56% for
Harris. This is a meaningful and leading indicator of a likely
positive earnings surprise.
Harris currently has a Zacks Rank #3 (Hold). Note that stocks
with Zacks Rank of #1 (Strong Buy), 2 (Buy) or 3 (Hold) have a
significantly higher chance of beating earnings.
The combination of Harris' Zacks Rank #3 and +2.56% ESP makes
us confident of positive earnings beat this release.
What is Driving the Better-Than-Expected
We expect Harris to deliver improved results this quarter as
the company's RF Communications segment is gaining traction in
international markets. This momentum is likely to continue since
Harris' next-generation Falcon III tactical radio is gaining
popularity. The company has received $234 million worth of
tactical radio contracts globally in the past few months.
Moreover, the acquisition of CapRock Communications gives
Harris a strong foothold in the lucrative energy market. Notably,
the company has been selected as one of the 20 contractors to
compete for work under the Global Tactical Advanced
Communications Systems contract initiated by the U.S. Army's
Program Executive Office-Command Communications and Control.
Other Stocks to Consider
Here are some other companies to consider as our model shows
these have the right combination of elements to post an earnings
beat this quarter:
) with earnings ESP of +33.33% and Zacks Rank #1 (Strong
) with earnings ESP of +40.00% and Zacks Rank #1 (Strong
) with earnings ESP of +14.41% and Zacks Rank #2 (Buy).
EMBRAER AIR-ADR (ERJ): Free Stock Analysis
HARRIS CORP (HRS): Free Stock Analysis Report
NOKIA CP-ADR A (NOK): Free Stock Analysis
POLYCOM INC (PLCM): Free Stock Analysis
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