Harris Corp.

Harris Corp. (HRS - Analyst Report) boasts an excellent track record of beating analyst estimates. While the company missed the consensus earnings expectation by a penny last quarter, it turned in only 1 other miss over the past 4 years. HRS is scheduled to report fiscal first-quarter results on October 29.

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 over $5.3 billion and 16,500 employees - including nearly 7,000 engineers and scientists.

Recent Events

The company, a Zacks #1 Rank (“strong buy”) name, recently announced that it received a series of new orders totaling $6 million from the U.S. Department of Defense for its RF-7800W High-Capacity Line-of-Sight radio, a new product that expands Harris’ leadership in tactical communications.

HRS Increased Income Payouts

The company hiked its quarterly dividend to 20 cents per share from a previous 15 cents in late August. This dividend was paid out September 17. The higher income translates into a dividend yield of 2.2%, which is competitive within Harris’ industry as most of its peers pay no income.

The annual dividend rate is now 80 cents per share versus the prior 80 cents. Harris note that the higher income payout is consistent with its long-term target of sustained dividend payouts in the range of 20% of net income.

"We are very pleased to announce this substantial annual increase in our quarterly dividend," said Howard L. Lance, chairman, president, and CEO. "We reported excellent financial results for fiscal year 2008, with strong earnings and cash flow. Our track record of improving financial performance over the past five years has allowed Harris to provide consistent annual dividend increases. New orders and a robust pipeline of opportunities in the markets we serve are giving us confidence that fiscal 2009 will be another year of strong financial performance. This dividend increase further demonstrates the company's ongoing commitment to increasing shareholder value."

Fundamentals Reflect Solid Growth

Harris’ fourth-quarter non-GAAP earnings per share totaled 95 cents per share, which came in above the year-prior result but missed the consensus earnings expectation by a penny. Factoring in this miss, the company exceeded Street estimates by an average of 3% over the past 5 consecutive quarters. HRS turned in only 1 other miss over the past 4 years.

Harris is scheduled to report fiscal first-quarter results on October 29.

The company’s return on equity (ROE) of 21% continues to stand high above the industry’s average of 8%.

Read the full analyst report on HRS