Harman International Ind. Inc. Earnings: Revenue Grows Again by Double Digits

S&P 500 (NYSE:SPY) component Harman International Ind. Inc. (NYSE:HAR) reported its results for the third 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 Third Quarter

Results: Net income for Harman International Ind. Inc. rose to $173 million ($2.38 per share) vs. $36.6 million (51 cents per share) in the same quarter a year earlier. This is a more than fourfold rise from the year-earlier quarter.

Revenue: Rose 15.6% to $1.1 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Harman International Ind. Inc. reported adjusted net income of 67 cents per share. By that measure, the company beat the mean estimate of 66 cents per share. It beat the average revenue estimate of $1.04 billion.

Quoting Management: “Our relentless focus on innovation and execution has earned us ten straight quarters of profitable growth,” said Dinesh C. Paliwal, the Company’s Chairman, President and CEO. “The luxury car segment we serve has been highly resilient and has outpaced the overall automotive market, and we continue to gain market share. Due to our technology leadership and our strong innovation pipeline, a leading automaker has selected Harman for an infotainment award worth more than $2 billion. It is the largest award ever for Harman.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 19.3%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 25.5% from the year earlier quarter.

The company has now seen its net income increase for three consecutive quarters. In the second quarter, net income rose 11.7% and in the first quarter, the figure rose 76.6%.

For three consecutive quarters, the company has topped analyst estimates. It beat the mark by 7 cents in the second quarter and by 19 cents in the first quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 71 cents a share to 65 cents over the last ninety days. In the past month, the average estimate for the fiscal year has fallen from $2.90 per share to $2.82 abs.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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