Rising costs hurt S&P 500 (NYSE:SPY) component Harris Corporation (NYSE:HRS) in the fourth quarter as profit dropped from a year earlier. Harris Corp. is an international communications and information technology company serving commercial markets and government.
Harris Earnings Cheat Sheet for the Fourth Quarter
Results: Net income for Harris Corporation fell to $133.5 million ($1.06 per share) vs. $151.4 million ($1.16 per share) a year earlier. This is a decline of 11.8% from the year earlier quarter.
Revenue: Rose 14.5% to $1.67 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: HRS reported adjusted net income of $1.24 per share. By that measure, the company was about in line with expectations as the mean analyst estimate was $1.23 per share. Analysts were expecting revenue of $1.64 billion.
Quoting Management: “Harris fourth quarter results represented a solid finish to another strong year for the company,” said Howard L. Lance, chairman, president and chief executive officer. “While large shipments of tactical radios for equipping MRAP vehicles in the prior year continued to create tough year-over-year comparisons, the company still achieved 4percent organic revenue growth driven by 11percent growth in Government Communications Systems and 7percent organic growth in the new Integrated Network Solutions segment. Also, adjusted EBITDA showed strong growth, increasing seven percent compared with the prior year and 9percent on a sequential basis. The company achieved these results even while continuing to invest in new market initiatives.”
Gross margin shrank 2.1 percentage points to 34.5%. The contraction appeared to be driven by increased costs, which rose 18.3% from the year earlier quarter while revenue rose 14.5%.
Revenue has risen the past four quarters. Revenue increased 6.3% to $1.41 billion in the third quarter. The figure rose 18.1% in the second quarter from the year earlier and climbed 16.8% in the first quarter from the year-ago quarter.
Competitors to Watch: ViaSat, Inc. (NASDAQ:VSAT), EMS Technologies, Inc. (NASDAQ:ELMG), Motorola Solutions Inc (NYSE:MSI), Comtech Telecomm. Corp. (NASDAQ:CMTL), ITT Corporation (NYSE:ITT), Globecomm Systems, Inc. (NASDAQ:GCOM), SeaChange International (NASDAQ:SEAC), Avid Technology, Inc. (NASDAQ:AVID), Verizon (NYSE:VZ), AT&T (NYSE:T), Sprint (NYSE:S), Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC), and Technicolor S.A. (NYSE:TCH).
(Source: Xignite Financials)