The 10-second takeaway
For the quarter ended Dec. 28 (Q2), Harris missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share contracted significantly.
Margins contracted across the board.
Harris booked revenue of $1.29 billion. The nine analysts polled by S&P Capital IQ foresaw revenue of $1.31 billion on the same basis. GAAP reported sales were 1.8% lower than the prior-year quarter's $1.31 billion.
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 $1.25. The 12 earnings estimates compiled by S&P Capital IQ averaged $1.20 per share. GAAP EPS of $0.42 for Q2 were 64% lower than the prior-year quarter's $1.16 per share. (The prior-year quarter included -$0.02 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.3%, 40 basis points worse than the prior-year quarter. Operating margin was 17.7%, 70 basis points worse than the prior-year quarter. Net margin was 3.8%, 640 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.32 billion. On the bottom line, the average EPS estimate is $1.27.
Next year's average estimate for revenue is $5.27 billion. The average EPS estimate is $5.04.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 619 members out of 640 rating the stock outperform, and 21 members rating it underperform. Among 181 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 178 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 $49.67.
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