Harman International Earnings Cheat Sheet: Higher-Than-Expected Net Income

S&P 500 (NYSE:SPY) component Harman International Ind. Inc. (NYSE:HAR) reported net income above Wall Street’s expectations for the first quarter. Harman International Industries is a global audio equipment company. It is engaged in the design, development, manufacturing and marketing of high-quality audio products. It also offers electronic systems for vehicle applications.

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Harman International Ind Earnings Cheat Sheet for the First Quarter

Results: Net income for Harman International Ind. Inc. rose to $48 million (67 cents per share) vs. $27.4 million (39 cents per share) in the same quarter a year earlier. This marks a rise of 75.3% from the year earlier quarter.

Revenue: Rose 25.6% to $1.05 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: HAR reported adjusted net income of 69 cents per share. By that measure, the company beat the mean estimate of 50 cents per share. It beat the average revenue estimate of $960.6 million.

Quoting Management: Dinesh C. Paliwal, the Company’s Chairman, President and CEO, said, “We are now in a new growth phase at HARMAN with strong footholds in each of the BRIC countries – further diversifying and expanding our growth prospects. Our operational realignment will better enable us to focus and make measurable improvement on the profitability of our infotainment business and we are aggressively working on increasing our backlog of scalable systems. We are excited to have launched a global marketing campaign featuring some of the world’s most prominent music artists to support penetration of our family of brands across our business lines. Our focus on operational excellence and ability to pass on cost increases has allowed us to reduce the impact of neodymium.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 25.5% to $1.03 billion in the fourth quarter of the last fiscal year. The figure rose 11.8% in the third quarter of the last fiscal year from the year earlier and climbed 2% in the second quarter of the last fiscal year from the year-ago quarter.

The company topped expectations last quarter after falling short of forecasts in the fourth quarter of the last fiscal year with net income of 34 cents versus a mean estimate of net income of 42 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 86 cents a share to 77 cents over the last ninety days. At $2.55 per share, the average estimate for the fiscal year has fallen from $2.90 ninety days ago.

Competitors to Watch: Panasonic Corp. (NYSE:PC), Sony Corporation (NYSE:SNE), Audiovox Corporation (NASDAQ:VOXX), Koss Corporation (NASDAQ:KOSS), Emerson Radio Corp. (AMEX:MSN), Apple Inc. (NASDAQ:AAPL), and Mad Catz Interactive, Inc. (AMEX:MCZ).

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(Source: Xignite Financials)