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Harris (HRS) Meets Q4 Earnings Estimates, Issues '18 View

Harris Corporation HRS reported fourth-quarter fiscal 2017 earnings (on an adjusted basis) of $1.49 per share, in line with the Zacks Consensus Estimate. Quarterly earnings improved on a year-over-year basis. Revenues in the quarter came in at $1,542 million, ahead of the Zacks Consensus Estimate of $1,510.9 million.

Cost of product sales and services in the reported quarter was $1,019 million, compared with $1,005 million in the prior-year quarter. Engineering, selling & administrative expenses totaled $248 million in the quarter under review compared with $278 million in the fourth quarter of fiscal 2016.

Segmental Performance

Revenues at the Communication Systems segment came in at $449 million in the quarter, up 3% on the back of increased sales of legacy international tactical radios. Segmental operating income improved to $146 million owing to higher revenues.

Revenues at the Space and Intelligence Systems unit were $506 million, down 4%. Results were hurt by lower revenues from environmental and space programs. Operating income for the segment was $80 million was flat year over year.

Revenues at the Electronic Systems unit totaled $591 million, up 4%. Segmental operating income was $104 million, down 12.60%.

At the end of fiscal 2017, the company had cash and cash equivalents of $484 million, compared with $487 million at the end of fiscal 2016. Total long-term debt at the end of fiscal year was $3,396 million compared with $4,120 million at the end of fiscal 2016.

Harris Corporation Price, Consensus and EPS Surprise

 

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

FY18 View

This Zacks Rank #4 (Sell) company now expects earnings per share (on an adjusted basis) for fiscal 2018 in the band of $5.85 to $6.05. The Zacks Consensus Estimate for earnings  is pegged at $6.06 per share. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The company projects fiscal 2017 revenue in the band of $6.02--$6.14 billion. The Zacks Consensus Estimate for fiscal 2018 revenues is pegged at $6.06 billion.

Harris, with peers like ARC Group World ARCW and Clearfield Inc CLFD, has been consistently focusing on business innovation in a bid to deliver some of the best technology and products in the industry. Notably, the company has been recently selected by Lockheed Martin LMT to upgrade mission system avionics for the F-35 Lightning II as part of the Technology.

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Harris Corporation (HRS): Free Stock Analysis Report
 
ARC Group Worldwide, Inc. (ARCW): Free Stock Analysis Report
 
Clearfield, Inc. (CLFD): Free Stock Analysis Report
 
Lockheed Martin Corporation (LMT): Free Stock Analysis Report
 
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