UPDATE: Harris Posts Upbeat Q2 Earnings, Lifts Outlook

Harris Corp. HRS reported better-than-expected earnings for the fiscal second quarter and lifted its earnings forecast for the year. The Melbourne, Florida-based company posted quarterly ncome from continuing operations of $140 million, or $1.32 per share, compared to $137 million, or $1.27 per share, in the year-ago period. Its revenue slipped to $1.21 billion from $1.22 billion. However, analysts were expecting earnings of $1.18 per share on revenue of $1.18 billion. For the quarter, revenue for RF Communications segment fell to $432 million from $455 million, while Government Communications Systems segment revenue rose 5% to $454 million from $433 million. Integrated Network Solutions segment revenue declined 7% to $340 million from $366 million in the year-ago period. Orders were $1.11 billion in the quarter. Harris also announced its plans to acquire Exelis Inc. XLS for $23.75 per share in a cash and stock transaction. "We performed well in the second quarter," said William M. Brown, chairman, president and chief executive officer. "Government Communications Systems posted its fifth consecutive quarter of year-over-year revenue growth and generated excellent operating income, demonstrating again the strength of its core franchises. We continue to track well in our strategy to expand internationally and drive operational excellence initiatives to lower costs, while investing in technology and innovation for the future." Harris now projects fiscal 2015 earnings of $4.95 to $5.05 per share, versus its earlier forecast of $4.75 to $5.00 per share. Harris shares rose 1.18% to close at $69.49 yesterday.