Defense Contractor Harris Corp. Beats on Earnings
Melbourne, Fla.-based Harris Corp. shares were rising in early Tuesday trading, following a fiscal Q1 2014 earnings report this morning that showed the defense contractor beat earnings estimates handily, despite experiencing weaker-than-expected revenues.
Revenues of $1.19 billion fell short of the anticipated $1.22 billion, but earnings per share from continuing operations of $1.18 exceeded analyst estimates by a nickel. Meanwhile, the company performed well on two other metrics: free cash flow and new orders booked to replenish revenues from work performed in the quarter.
Free cash flow -- cash profits -- at Harris amounted to $139 million, or 109% of reported income under generally accepted accounting principles (GAAP). The company took in $1.2 billion in new orders in the fiscal first quarter, replacing all revenues booked, and then some.
This performance, while subpar by some analyst estimates, nonetheless encouraged management to reiterate its guidance for the rest of this year. The defense contractor expects revenues to decline 1% to 3% year over year, but earnings from continuing operations to range from $4.65 to $4.85 per share, roughly in line with the rate at which earnings accrued in Q1.
The article Defense Contractor Harris Corp. Beats on Earnings originally appeared on Fool.com.
Fool contributor Rich Smith has no position in any stocks mentioned. 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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
