Harman International Industries Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Harman International Industries Inc./DE/ (NYSE:HAR) will unveil its latest earnings tomorrow, Thursday, January 31, 2013. 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 net income of 87 cents per share, a rise of 4.8% 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 $1.05. Between one and three months ago, the average estimate moved down. It also has dropped from 88 cents during the last month. Analysts are projecting profit to rise by 16.4% versus last year to $3.41.

Past Earnings Performance: Last quarter, the company saw profit of 79 cents per share versus a mean estimate of net income of 79 cents per share. This comes after two consecutive quarters of exceeding expectations.

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A Look Back: In the first quarter, profit rose 12.8% to $54.6 million (79 cents a share) from $48.4 million (67 cents a share) the year earlier, meeting analyst expectations. Revenue fell 5% to $998.2 million from $1.05 billion.

Here’s how Harman International Industries traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

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Wall St. Revenue Expectations: Analysts predict a decline of 6.2% in revenue from the year-earlier quarter to $1.06 billion.

Analyst Ratings: There are three out of five analysts surveyed (60%) rating Harman International Industries Inc./DE a buy.

Key Stats:

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

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 17.9% in the second quarter of the last fiscal year, 15.6% in the third quarter of the last fiscal year and 5.8%in the fourth quarter of the last fiscal year before dropping in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.59 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.

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