Harman International Industries Inc. First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Harman International Industries Inc./DE/ (NYSE:HAR) will unveil its latest earnings on Wednesday, October 31, 2012. 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.

Harman International Industries Inc./DE/ Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 78 cents per share, a rise of 13% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 79 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 78 cents during the last month. Analysts are projecting profit to rise by 28.7% versus last year to $3.77.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 2 cents, reporting net income of 67 cents per share against a mean estimate of profit of 65 cents per share.

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A Look Back: In the fourth quarter of the last fiscal year, profit rose more than twofold to $49.3 million (69 cents a share) from $18.9 million (26 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 5.8% to $1.09 billion from $1.03 billion.

Stock Price Performance: Between September 27, 2012 and October 25, 2012, the stock price dropped $4.19 (-8.9%), from $46.82 to $42.63. The stock price saw one of its best stretches over the last year between August 2, 2012 and August 10, 2012, when shares rose for seven straight days, increasing 16.8% (+$6.58) over that span. It saw one of its worst periods between May 1, 2012 and May 10, 2012 when shares fell for eight straight days, dropping 15.5% (-$7.74) over that span.

Wall St. Revenue Expectations: Analysts are projecting a rise of 2.9% in revenue from the year-earlier quarter to $1.08 billion.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 11.7% in the second quarter of the last fiscal year and more than fourfold in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 25.5% in the first quarter of the last fiscal year, 17.9% in the second quarter of the last fiscal year and 15.6% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year of the last fiscal year.

Analyst Ratings: With two analysts rating the stock as a buy, one rating it as a sell and one rating it as a hold, there are indications of a bullish outlook.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.53 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.59 in the third quarter of the last fiscal year to the last quarter driven in part by a decrease in current assets. Current assets decreased 3.6% to $2.12 billion while liabilities rose by 0.3% to $1.38 billion.

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

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