Harris Reports Above Estimates; Lowers Earning’s Guidance
Harris Corp. (NYSE: HRS- $108.92) reported financial results for fiscal third quarter 2017, with earnings and revenue that topped analysts’ expectations; but it narrowed its earnings guidance range for fiscal 2017 in line with Street estimates. The Melbourne, Florida-based company now expects fiscal 2017 adjusted earnings of $5.50 – $5.55/share versus the Street view of $5.54. The previous guidance was for $5.40 – $5.60. For the quarter, the provider of products, systems and services that have domestic and international defense and civil government applications posted adjusted earnings of $1.38 per share, compared with the prior-year period’s $1.34 per share and seven cents ahead of expectations. Revenue was $1.49 billion, down from $1.55 billion in the same quarter last year. The Street view was for revenue of $1.46 billion. Communication Systems revenue was down by 5% from a year ago; Space and Intelligent Systems negative by 3%; and Electronic Systems revenue was flat.
Harris expects fiscal 2017 revenue on an organic basis to be down about 1% from prior year, compared to previous guidance of flat to down 2%, excluding $60 million of prior-year revenue from the divested Aerostructures business. The shares, up 35% over the past 52-weeks, can be considered for a well-diversified aggressive account.