Harman International Ind. Inc. Earnings: Two Quarters in a Row of Rising Profit

S&P 500 (NYSE:SPY) component Harman International Ind. Inc. (NYSE:HAR) reported net income above Wall Street’s expectations for the second 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 Second Quarter

Results: Net income for the electronic equipment company rose to $59 million (82 cents per share) vs. $53.1 million (74 cents per share) in the same quarter a year earlier. This marks a rise of 11.2% from the year earlier quarter.

Revenue: Rose 17.9% to $1.13 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: Harman International Ind. Inc. reported adjusted net income of 83 cents per share. By that measure, the company beat the mean estimate of 76 cents per share. It beat the average revenue estimate of $1.05 billion.

Quoting Management: Dinesh C. Paliwal, the Company’s Chairman, President and CEO, said, “We are earning trust with key stakeholders by delivering sound financial returns, by investing in bringing new innovation to market and by gaining share from our competitors. With over 4000 patents and patents pending, we believe our accelerated pace of innovation is a key driver of our continued profitable growth.”

Key Stats:

Gross margin shrank one percentage points to 27.1%. The contraction appeared to be driven by increased costs, which rose 19.5% from the year earlier quarter while revenue rose 17.9%.

Revenue has risen the past four quarters. Revenue increased 25.5% to $1.05 billion in the first quarter. The figure rose 25.5% in the fourth quarter of the last fiscal year from the year earlier and climbed 11.8% in the third quarter of the last fiscal year from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with net income of 69 cents versus a mean estimate of net income of 50 cents per share.

The company has now seen net income rise in two straight quarters. In the first quarter, net income rose 76.6% from the year earlier.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the third quarter has moved down from 68 cents a share to 66 cents over the last thirty days. The average estimate for the fiscal year is $2.79 per share, down from $2.83 ninety days ago.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com