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Will Harris' (HRS) Earnings Disappoint Investors in Q4?
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Harris Corporation is slated to release fourth-quarter fiscal 2016 results on Aug 2, before the market opens.
Last quarter, Harris posted a positive earnings surprise of 3.57%. Moreover, the company’s earnings surpassed the Zacks Consensus Estimate in each of the previous four quarters, with an average beat of 6.14%.
Let’s see how things are shaping up for this announcement.
Factors at Play
Harris has high dependence on U.S. government projects, which is a major concern for the company. In case of unforeseen events, high customer concentration increases the risks for a company. Morevoer the company has been facing increasing competition from peers such as General Dynamics Corporation (GD - Free Report) and Motorola Solutions Inc. (MSI - Free Report) . Another concern for Harris is the possibility of failing to derive the desired synergies from its acquisitions. Further, foreign currency risks and economic slowdown in several major economies raise caution.
However, the company’s efforts to reward shareholders through dividends/buybacks encourage us. Moreover, Harris recently won several major government contracts which should boost the top line significantly.
Earnings Whispers
Our proven model does not conclusively show that Harris is likely to beat the Zacks Consensus Estimate this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below:
Zacks ESP: The ESP for the company stands at -0.69% as the Most Accurate estimate is $1.43 per share while the Zacks Consensus Estimate is pegged at $1.44.
Zacks Rank: Harris has a Zacks Rank #4 (Sell). Please note we advise investors not to consider Sell-rated stocks (Zacks Rank #4 or 5) going into an earnings announcement.
Here is a stock in the broader Computer & Technology sector worth considering instead as our model shows it has the right combination of elements to post an earnings beat this quarter.
CDK Global Inc. has an earnings ESP of +4.26% and a Zacks Rank #2, is scheduled to post second-quarter earnings on Aug 3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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Will Harris' (HRS) Earnings Disappoint Investors in Q4?
Harris Corporation is slated to release fourth-quarter fiscal 2016 results on Aug 2, before the market opens.
Last quarter, Harris posted a positive earnings surprise of 3.57%. Moreover, the company’s earnings surpassed the Zacks Consensus Estimate in each of the previous four quarters, with an average beat of 6.14%.
Let’s see how things are shaping up for this announcement.
Factors at Play
Harris has high dependence on U.S. government projects, which is a major concern for the company. In case of unforeseen events, high customer concentration increases the risks for a company. Morevoer the company has been facing increasing competition from peers such as General Dynamics Corporation (GD - Free Report) and Motorola Solutions Inc. (MSI - Free Report) . Another concern for Harris is the possibility of failing to derive the desired synergies from its acquisitions. Further, foreign currency risks and economic slowdown in several major economies raise caution.
However, the company’s efforts to reward shareholders through dividends/buybacks encourage us. Moreover, Harris recently won several major government contracts which should boost the top line significantly.
Earnings Whispers
Our proven model does not conclusively show that Harris is likely to beat the Zacks Consensus Estimate this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below:
Zacks ESP: The ESP for the company stands at -0.69% as the Most Accurate estimate is $1.43 per share while the Zacks Consensus Estimate is pegged at $1.44.
Zacks Rank: Harris has a Zacks Rank #4 (Sell). Please note we advise investors not to consider Sell-rated stocks (Zacks Rank #4 or 5) going into an earnings announcement.
HARRIS CORP Price and EPS Surprise
HARRIS CORP Price and EPS Surprise | HARRIS CORP Quote
Stocks to Consider
Here is a stock in the broader Computer & Technology sector worth considering instead as our model shows it has the right combination of elements to post an earnings beat this quarter.
CDK Global Inc. has an earnings ESP of +4.26% and a Zacks Rank #2, is scheduled to post second-quarter earnings on Aug 3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>