Harman International Industries
The 10-second takeaway
For the quarter ended March 31 (Q3), Harman International Industries beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded significantly.
Margins improved across the board.
Harman International Industries logged revenue of $1.10 billion. The three analysts polled by S&P Capital IQ expected revenue of $1.04 billion on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $948.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.74. The five earnings estimates compiled by S&P Capital IQ anticipated $0.67 per share. GAAP EPS of $2.38 for Q3 were 367% higher than the prior-year quarter's $0.51 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 26.7%, 30 basis points better than the prior-year quarter. Operating margin was 5.5%, 50 basis points better than the prior-year quarter. Net margin was 15.8%, 1,190 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.12 billion. On the bottom line, the average EPS estimate is $0.68.
Next year's average estimate for revenue is $4.34 billion. The average EPS estimate is $2.87.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 164 members out of 183 rating the stock outperform, and 19 members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give Harman International Industries a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Harman International Industries is hold, with an average price target of $53.20.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.