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Harris (HRS) Beats on Q3 Earnings & Sales, View Adjusted

Harris CorporationHRS reported third-quarter fiscal 2017 earnings (on an adjusted basis) of $1.38 per share, which beat the Zacks Consensus Estimate by 7 cents. Quarterly earnings declined 4.83% on a year-over-year basis.

Revenues in the third quarter came in at $1,489.0 million and also beat the Zacks Consensus Estimate of $1,467.2 million. However, the figure declined from the year-ago quarter.

Cost of product sales and services in the reported quarter was $964 million, compared with $1,009 million in the prior-year quarter. Engineering, selling & administrative expenses totaled $250 million in the quarter under review, as compared with $273 million in the third quarter of fiscal 2016.

Segmental Performance

Revenues at the Communication Systems segment came in at $461 million in the quarter, down 5%. Lower volumes hurt the results. Segmental operating income declined to $141 million due to lower volumes.

Revenues at the Space and Intelligence Systems unit were $475 million, down 2.86%. Results were hurt by lower revenues from environmental and space programs. Operating income for the segment was $76 million, up 1.33%.

Revenues at the Electronic Systems unit totaled $553 million, down 3.83%. Segmental operating income was $115 million, up 3.60%.

At the end of the reported quarter, the company had cash and cash equivalents of $302 million, compared with $487 million at the end of fiscal 2016. Total long-term debt at the end of fiscal third quarter was $3,859 million, compared with $4,120 million at the end of fiscal 2016.

View Tweaked

The company now expects earnings per share (on an adjusted basis) for fiscal 2017 in the band of $5.50 to $5.55 (old guidance: $5.40 to $5.60). The Zacks Consensus Estimate for fiscal 2017 earnings stands at $5.54 per share.

The company expects fiscal 2017 revenue (on an organic basis) to decline of 1% year over year, as compared to the previous guidance of flat to down 2%, excluding $60 million of prior-year revenues from the divested Aerostructures business. The Zacks Consensus Estimate for fiscal 2017 revenues stands at $5.83 billion.

Harris Corporation Price, Consensus and EPS Surprise

Harris Corporation Price, Consensus and EPS Surprise | Harris Corporation Quote

Zacks Rank & Key Picks

Harris currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the wireless equipment sector are PC-Tel PCTI , Motorola Solutions MSI and Sonus Networks SONS . While PC-Tel sports a Zacks Rank #1 (Strong Buy), Motorola and Sonus carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Shares of PC-Tel, Motorola and Sonus gained over 46%, 3% and 23%, respectively, on a year-to-date basis.

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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 Nasdaq, Inc.


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

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