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Harris (HRS) Beats on Q3 Earnings & Sales, View Adjusted

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Harris Corporation  reported third-quarter fiscal 2017 earnings (on an adjusted basis) of $1.38 per share, which beat the Zacks Consensus Estimate by 7 cents. Quarterly earnings declined 4.83% on a year-over-year basis.

Revenues in the third quarter came in at $1,489.0 million and also beat the Zacks Consensus Estimate of $1,467.2 million. However, the figure declined from the year-ago quarter.

Cost of product sales and services in the reported quarter was $964 million, compared with $1,009 million in the prior-year quarter. Engineering, selling & administrative expenses totaled $250 million in the quarter under review, as compared with $273 million in the third quarter of fiscal 2016.

Segmental Performance

Revenues at the Communication Systems segment came in at $461 million in the quarter, down 5%. Lower volumes hurt the results. Segmental operating income declined to $141 million due to lower volumes.

Revenues at the Space and Intelligence Systems unit were $475 million, down 2.86%. Results were hurt by lower revenues from environmental and space programs. Operating income for the segment was $76 million, up 1.33%.

Revenues at the Electronic Systems unit totaled $553 million, down 3.83%. Segmental operating income was $115 million, up 3.60%.

At the end of the reported quarter, the company had cash and cash equivalents of $302 million, compared with $487 million at the end of fiscal 2016. Total long-term debt at the end of fiscal third quarter was $3,859 million, compared with $4,120 million at the end of fiscal 2016.

View Tweaked

The company now expects earnings per share (on an adjusted basis) for fiscal 2017 in the band of $5.50 to $5.55 (old guidance: $5.40 to $5.60). The Zacks Consensus Estimate for fiscal 2017 earnings stands at $5.54 per share.

The company expects fiscal 2017 revenue (on an organic basis) to decline of 1% year over year, as compared to the previous guidance of flat to down 2%, excluding $60 million of prior-year revenues from the divested Aerostructures business. The Zacks Consensus Estimate for fiscal 2017 revenues stands at $5.83 billion.

Harris Corporation Price, Consensus and EPS Surprise

 

Harris Corporation Price, Consensus and EPS Surprise | Harris Corporation Quote

Zacks Rank & Key Picks

Harris currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the wireless equipment sector are PC-Tel , Motorola Solutions (MSI - Free Report) and Sonus Networks . While PC-Tel sports a Zacks Rank #1 (Strong Buy), Motorola and Sonus carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of PC-Tel, Motorola and Sonus gained over 46%, 3% and 23%, respectively, on a year-to-date basis.

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