Harman International Industries
The 10-second takeaway
For the quarter ended March 31 (Q3), Harman International Industries met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share grew. GAAP earnings per share shrank significantly.
Margins dropped across the board.
Harman International Industries reported revenue of $1.06 billion. The six analysts polled by S&P Capital IQ predicted revenue of $1.06 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.79. The nine earnings estimates compiled by S&P Capital IQ predicted $0.61 per share. Non-GAAP EPS of $0.79 for Q3 were 6.8% higher than the prior-year quarter's $0.74 per share. GAAP EPS of $0.50 for Q3 were 79% lower than the prior-year quarter's $2.38 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 25.4%, 140 basis points worse than the prior-year quarter. Operating margin was 3.6%, 250 basis points worse than the prior-year quarter. Net margin was 3.3%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.12 billion. On the bottom line, the average EPS estimate is $0.84.
Next year's average estimate for revenue is $4.24 billion. The average EPS estimate is $3.00.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 168 members out of 184 rating the stock outperform, and 16 members rating it underperform. Among 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 give Harman International Industries a green thumbs-up, and two give 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 $51.43.
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