Harris' (HRS) Fourth quarter Results Exceeded Wall Street Expectations
Shares of Harris Corporation's (HRS) closed down $1.37 or 1.65% to $81.57 per share in Friday's trading session after the company reported earnings for the company's 2015 fourth quarter early this morning. The company reported stronger than expected earnings and revenue for the quarter. But this is not new. Harris has a track record of positive earnings surprises in each of the last four quarters.
Harris focuses on communications equipment for voice, data and video applications for commercial and governmental customers.
For the company's fourth quarter, the communications and information tech firm reported a loss of $56.2 million or $0.51 per share compared to net income of $131.4 million or $1.22 per share in the same period one year ago. On an adjusted basis, earnings from continuing operations came in at $1.32 per share and beat analyst´s consensus by $0.11. Revenue for the quarter was $1.53 billion, up 15% from last year, and also beats estimates in this case by $290M. Taking a look by segments, revenue in RF Communications was up 2.3% to $504.7 million for the quarter, revenue in the Government Communications Systems rose 1% to $484.7 million, while revenue in Integrated Network Solutions declined 23% to $288.7 million. For the year, the company reported profit of $334.1 million, or $3.11 per share. Revenue was reported as $5.08 billion.
Harris has reorganized its business segments in order to achieve efficiencies as well as synergies that result from its recent acquisition of Exelis. "We announced our reorganization into four market-focused segments for fiscal 2016 and we consolidated headquarters, combining the top talent from across both companies. We also announced our intention to close Exelis' Ft. Wayne tactical radio facility and consolidate operations into our world-class Rochester facility. These initial integration steps mark good progress towards achieving the significant cost savings and improved competitive position this combination affords us" said CEO William M. Brown.
For Fiscal 2016, the company expects net income per diluted share of $5.60-$5.80 on revenue of $7.67 billion to $7.83 billion.
Mario Gabelli, the CEO of GAMCO Investors, has initiated a new position in the stock with 322,125 shares at an average price of $79.7.
Harris shares have risen 13.38% in a year-to-date basis and 18.98% in the past 12 months.
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