Harris Corporation (HRS) recently posted fiscal first-quarter earnings of 83 cents per share, topping the Zacks Consensus Estimate by 9%. The company also hiked its earnings guidance and analysts followed suit.
Company Description
Harris is an international communications and information technology company serving government, defense and commercial markets in more than 150 countries. Headquartered in Melbourne, Florida, the company has annual revenue of approximately $5 billion and more than 15,000 employees – including nearly 7,000 engineers and scientists.
A Solid First Quarter
The company recently posted fiscal first-quarter earnings of 83 cents per share, topping the Zacks Consensus Estimate by 9%. Revenue climbed from last year’s $1.17 billion to $1.20 billion.
Management said new orders, revenue and earnings exceeded expectations in the first quarter as a result of strong performance in both the RF Communications and Government Communications Systems segments.
Higher Forecasts
The company also hiked its fiscal year earnings guidance to a rang of $3.74 to $3.84 per share, versus its previous range of $3.25 to $3.40 per share.
Analysts polled by Zacks followed suit, calling for earnings of $3.85 per share for the year ending June 2010. Last month, the fiscal year Zacks Consensus Estimate stood at $3.31 per share.
Strong Fundamentals and Robust Momentum
Harris offers a return on equity (ROE) of 25%, squashing the industry average of 3%. The company pays a dividend yield of 2%, while most of its industry peers pay no income.
Shares of HRS have been surging lately. Trading near a 52-week high, Harris has outpaced the market by about 40% over the past 3 months. Zacks Investment Research
