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Harris (HRS) Posts Better-Than-Expected Q1 Earnings

 October 29, 2012 07:24 AM
 

(By Balaseshan) Harris Corp. (NYSE: HRS), an international communications and information technology company, reported a first quarter loss due to additional impairment charges from discontinued Cyber Integrated Solutions and Broadcast Communications operations.

Loss was $85.8 million or $0.76 per share for the first quarter, compared to a profit of $121.6 million or $1.01 per share last year. Adjusted earnings per share (EPS) from continuing operations of $1.14, remained unchanged from last year.

Revenue from product sales and services decreased to $1.262 billion from $1.336 billion. Orders declined to $1.38 billion from $1.48 billion in the prior year.

Analysts, on average, polled by Thomson Reuters had expected a profit of $1.12 per share on revenue of $1.30 billion for the first quarter.

Revenue from RF Communications declined 10.5% to $444.7 million. Government Communications Systems revenue rose 5% to $465 million, on increases from the GOES-R weather program and the Space Network Ground Segment Sustainment (SGSS) program for NASA.

Integrated Network Solutions revenue decreased 10% to $376 million. Solid growth in CapRock Communications was more than offset by a decline in IT Services revenue, primarily from the loss of the Patriot program.

Looking ahead into the fiscal 2013, the company reiterated its EPS from continuing operations guidance of $5.10 to $5.30 and revenue outlook of about flat to 2% growth from last year. Street analysts predict EPS of $5.14 on revenue to decline by 0.50%.

HRS closed Friday's regular session up 0.17% at $47.14. The stock has been trading between $33.24 and $52.23 for the past 52 weeks.


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