Melbourne Florida-based Harris Corp. (NYSE: HRS – $92.73), a communication and electronics technology company, reported fiscal first quarter adjusted net income of $1.39 per share, up from $1.31 per share in the prior year period and came in higher than the $1.34 Street consensus. Revenues were $1.75 billion, down from $1.81 billion reported a year ago, but came in just higher than the $1.73 billion analysts’ estimates. The Space and Intelligence System segment was the bright spot for the quarter, which was offset by sales declines in Communication Systems, Critical Networks and Electronic Systems. The shares traded higher on the day and within sixty-nine cents of its all-time high set back in September.
For fiscal 2017, the company expects adjusted earnings to range from $5.70 to $5.90 per share on revenues of between $7.11 billion and $7.33 billion vs. the Street estimate of $5.78 per share on revenues of $7.25 billion. Separately, Harris announced a definitive agreement to sell its CapRock commercial business for $425 million in cash as part of its on-going strategic initiative to optimize the company’s business portfolio. Proceeds from the transaction will be used to pay down debt and return cash to shareholders. The transaction is expected to close in the first calendar quarter of 2017.