Harris Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Harris (NYSE:HRS) will unveil its latest earnings tomorrow, Tuesday, January 29, 2013. 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 estimate of analysts is for profit of $1.20 per share, a decline of 1.6% 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 $1.23. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.20 during the last month. Analysts are projecting profit to rise by 1% compared to last year’s $5.15.

Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the first quarter, it reported net income of $1.14 per share versus a mean estimate of $1.12. Two quarters ago, it reported profit of $1.42 per share.

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A Look Back: In the first quarter, the company swung to a loss of $85.8 million (76 cents a share) from a profit of $121.6 million ($1.01) a year earlier, but beat analyst expectations. Revenue fell 13.6% to $1.26 billion from $1.46 billion.

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

hrs

Wall St. Revenue Expectations: On average, analysts predict $1.31 billion in revenue this quarter, a decline of 9.7% from the year-ago quarter. Analysts are forecasting total revenue of $5.42 billion for the year, a decline of 0.6% from last year’s revenue of $5.45 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.88 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.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 35.3% in the fourth quarter of the last fiscal year and dropped again in the first quarter.

Analyst Ratings: There are mostly holds on the stock with eight of 10 analysts surveyed giving that rating.

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