Harris Beats Q4 Estimates

Harris Corporation HRS reported stronger-than-expected results for its fiscal fourth quarter. The Melbourne, Florida-based company reported a quarterly loss of $56.2 million, or $0.51 per share, versus a year-ago profit of $131.4 million, or $1.22 per share. Excluding items, the company's earnings from continuing operations came in at $1.32 per share. Its revenue rose 15 percent to $1.53 billion. However, analysts were expecting a profit of $1.21 per share on revenue of $1.24 billion. The average estimate among 4 Estimize users was for earnings of $1.26 per share and revenue of $1.27 billion. Its revenue in RF Communications business climbed 2.3 percent to $504.7 million for the quarter, while revenue in its Government Communications Systems business rose around 1 percent to $484.7 million. Revenue in the company's Integrated Network Solutions business declined 23 percent to $288.7 million. The company's orders climbed to $1.53 billion in the quarter, versus $1.09 billion in the year-ago period. "Fourth quarter results were solid, and the integration of Harris and Exelis is off to a good start," said William M. Brown, chairman, president and chief executive officer. "We announced our reorganization into four market-focused segments for fiscal 2016 and we consolidated headquarters, combining the top talent from across both companies. We also announced our intention to close Exelis' Ft. Wayne tactical radio facility and consolidate operations into our world-class Rochester facility. These initial integration steps mark good progress towards achieving the significant cost savings and improved competitive position this combination affords us." For FY16, Harris expects adjusted earnings of $5.60 to $5.80 per share, on revenue of $7.67 billion to $7.83 billion. Analysts projected earnings of $5.76 a share on revenue of $7.98 billion. Harris shares fell 0.14 percent to close at $82.94 yesterday.