Harman International Industries Outruns Estimates Again

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Harman International Industries (NYS: HAR) reported earnings Feb. 7. Here are the numbers you need to know.

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

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

Gross margins contracted, operating margins improved, net margins dropped.

Revenue details
Harman International Industries chalked up revenue of $1.13 billion. The one analyst polled by S&P Capital IQ predicted revenue of $1.05 billion. Sales were 18% higher than the prior-year quarter's $956.1 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.83. The five earnings estimates compiled by S&P Capital IQ anticipated $0.76 per share on the same basis. GAAP EPS of $0.82 for Q2 were 11% higher than the prior-year quarter's $0.74 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 27.1%, 120 basis points worse than the prior-year quarter. Operating margin was 8.5%, 90 basis points better than the prior-year quarter. Net margin was 5.3%, 20 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.04 billion.

Next year's average estimate for revenue is $4.26 billion.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 165 members rating the stock outperform and 18 members rating it underperform. Among 58 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 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 $53.25.

At the time this article was published 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. 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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