Harris First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Harris (NYSE:HRS) will unveil its latest earnings on Monday, October 29, 2012. Harris Corporation is an international communications and information technology company serving commercial markets and government.

Harris Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of $1.12 per share, a rise of 5.7% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.17. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.12 during the last month. For the year, analysts are projecting profit of $5.13 per share, a decline of 1.3% from last year.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the fourth quarter of the last fiscal year, the company reported net income of $1.42 per share versus a mean estimate of profit of $1.42 per share. In the third quarter of the last fiscal year, the company beat estimates by 5 cents.

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Wall St. Revenue Expectations: Analysts are projecting a decline of 11.6% in revenue from the year-earlier quarter to $1.29 billion.

Stock Price Performance: Between September 25, 2012 and October 23, 2012, the stock price dropped $4.87 (-9.5%), from $51.04 to $46.17. The stock price saw one of its best stretches over the last year between July 31, 2012 and August 13, 2012, when shares rose for 10 straight days, increasing 9.8% (+$4.07) over that span. It saw one of its worst periods between May 8, 2012 and May 18, 2012 when shares fell for nine straight days, dropping 7.6% (-$3.18) over that span.

A Look Back: In the fourth quarter of the last fiscal year, profit fell 3.3% to $129.1 million ($1.12 a share) from $133.5 million ($1.06 a share) the year earlier, meeting analyst expectations. Revenue fell 35.3% to $1.08 billion from $1.67 billion.

Key Stats:

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 3.9% in the first quarter of the last fiscal year, 0.5% in the second quarter of the last fiscal year and 4.4%in the third quarter of the last fiscal year before dropping in the fourth quarter of the last fiscal year.

Analyst Ratings: There are mostly holds on the stock with nine of 11 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.84 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)

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