Harman International Industries Whiffs on Earnings

Seth Jayson, The Motley Fool
Updated

Harman International Industries (NYS: HAR) reported earnings on Jan. 31. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Dec. 31 (Q2), Harman International Industries met expectations on revenues and whiffed on earnings per share.

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


Margins shrank across the board.

Revenue details
 Harman International Industries reported revenue of $1.06 billion. The five analysts polled by S&P Capital IQ expected to see revenue of $1.06 billion on the same basis. GAAP reported sales were 6.3% lower than the prior-year quarter's $1.13 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 $0.59. The seven earnings estimates compiled by S&P Capital IQ averaged $0.90 per share. GAAP EPS of $0.68 for Q2 were 17% lower than the prior-year quarter's $0.82 per share.

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 25.7%, 140 basis points worse than the prior-year quarter. Operating margin was 6.5%, 180 basis points worse than the prior-year quarter. Net margin was 4.5%, 80 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $1.08 billion. On the bottom line, the average EPS estimate is $0.80.

Next year's average estimate for revenue is $4.28 billion. The average EPS estimate is $3.41.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 168 members out of 183 rating the stock outperform, and 15 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give Harman International Industries a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Harman International Industries is outperform, with an average price target of $53.57.

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The article Harman International Industries Whiffs on Earnings 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 position in any of the stocks mentioned. 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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