Harris Goes Negative

Seth Jayson, The Motley Fool
Updated

Harris (NYS: HRS) reported earnings on Oct. 29. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Sep. 28 (Q1), Harris missed estimates on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted to a loss.


Gross margins dropped, operating margins grew, net margins dropped.

Revenue details
 Harris reported revenue of $1.26 billion. The 10 analysts polled by S&P Capital IQ hoped for revenue of $1.30 billion on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $1.46 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $1.14. The 13 earnings estimates compiled by S&P Capital IQ anticipated $1.13 per share. GAAP EPS were -$0.76 for Q1 compared to $1.01 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 32.8%, 100 basis points worse than the prior-year quarter. Operating margin was 17.0%, 250 basis points better than the prior-year quarter. Net margin was -6.8%, 1,510 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $1.31 billion. On the bottom line, the average EPS estimate is $1.22.

Next year's average estimate for revenue is $5.42 billion. The average EPS estimate is $5.15.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 624 members out of 646 rating the stock outperform, and 22 members rating it underperform. Among 166 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 162 give Harris a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Harris is hold, with an average price target of $46.50.

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The article Harris Goes Negative originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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