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Will Harris Beat These Analyst Estimates?

By Seth Jayson - Updated Apr 10, 2017 at 2:49PM

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Checking expectations

Harris (NYSE: HRS) is expected to report Q2 earnings on Jan. 29. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Harris's revenues will wane -9.7% and EPS will compress -1.6%.

The average estimate for revenue is $1.31 billion. On the bottom line, the average EPS estimate is $1.20.

Revenue details
Last quarter, Harris reported revenue of $1.26 billion. GAAP reported sales were 5.6% lower than the prior-year quarter's $1.34 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $1.14. GAAP EPS were -$0.76 for Q1 compared to $1.01 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 32.8%, 30 basis points worse than the prior-year quarter. Operating margin was 17.0%, 10 basis points worse than the prior-year quarter. Net margin was -6.8%, 1,590 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $5.42 billion. The average EPS estimate is $5.16.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 623 members out of 644 rating the stock outperform, and 21 members rating it underperform. Among 182 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 179 give Harris a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Harris is hold, with an average price target of $46.50.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

L3Harris Technologies, Inc. Stock Quote
L3Harris Technologies, Inc.
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