Aggressive · Stocks to Consider and Updates

Harris Revenue Grows 15% on Exelis Deal; Beats Estimates

HRS   Harris Corporation (NYSE: HRS – $80.35), which provides high-end telecommunication technology products and services to various U.S. and foreign government agencies, reported fiscal 2015 fourth quarter figures, which included results of Exelis Inc. following the May 29, 2015 acquisition. Revenue was $1.53 billion, compared with $1.33 billion in the prior year and Street views of $1.24 billion. Adjusted income, excluding acquisition-related costs and charges for restructuring and other items in the period, was $148 million, or $1.32 per share. Last year’s fourth quarter earnings was $1.28 per share and analysts had expected HRS to earn $1.21 for the current quarter. The net benefit from the Exelis acquisition in the fourth quarter was a contribution of $280 million in revenue and adjusted income of $0.09 per share. Orders in the fourth quarter were $1.53 billion compared with $1.09 billion in the prior year. And free cash flow was $413 million compared with $334 million a year ago. For the full fiscal year 2015, revenue was $5.08 billion compared with $5.01 billion in the prior year and adjusted income of $5.14 per share vs. $5.00 in fiscal 2014. Initial guidance for fiscal 2016 net income, excluding integration and other acquisition-related charges, is a range of $5.60 to $5.80 per share on revenue of $7.67 to $7.83 billion. Separately, and on top of a Navy contract awarded earlier this week, Harris said it received a $36 million contract to supply the U.S. Marine Corps with Falcon III radios. The shares, yielding 2.26%, can be held for future, albeit moderate, growth.

HRS

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