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What: Shares of audio equipment supplier Harman International
So what: Adjusted earnings per share of $0.79 easily topped estimates of $0.52, despite second-quarter revenue of $956.1 million falling just short of estimates. A 1% increase in gross profit helped push more sales dollars to the bottom line.
Now what: Management was very positive on the future for Harman, and the $13 billion in awarded business is certainly an impressive indicator going forward. If auto sales, where Harman gets 69% of its revenue, remains strong, then the company should at least manage to keep results at these levels. Since bottoming out below $10 in 2009, Harman shares have steadily marched higher. Improving results give me no reason to think the momentum will stop here
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.