We issued an updated research report on Harris Corporation on Aug 19.
Revenue Woes Continue in Q4
Harris Corporation reported lower-than-expected revenues in the fourth quarter of fiscal 2016. This was the fourth straight quarter in which the company’s top line missed the Zacks Consensus Estimate.
That the woes of the company are far from over is evident from its below-par guidance for fiscal 2017. The company expects earnings per share (on an adjusted basis) in the band of $5.70 to $5.90 for fiscal 2017. Following the disappointing guidance, the Zacks Consensus Estimate has been slashed 14 cents over the last 30 days to $5.79 per share. The company projects fiscal 2017 revenues in the band of $7.11 billion to $7.33 billion which is below the fiscal 2016 sales of $7.47 billion. The dreary view has caused the Zacks Consensus Estimate for revenues to be trimmed by $0.3 billion to $7.26 billion.
Foreign currency risks and economic slowdown in several major economies continue to hurt its top line. Weak energy markets have impacted the company's critical networks segment. Additionally though we are optimistic on Harris Corporation’s growth by acquisition strategy, we note that all acquisitions have certain integration risks associated with them. Failure to successfully assimilate the newly acquired companies into its own business model may result in trouble for the Zacks Rank # 4 (Sell) company.
However, the company does have positives to look up to like the significant number of order wins and its efforts to reward its shareholders through dividends/buybacks.
Stocks to Consider
Better-ranked stocks in the broader Computer & Technology space include ARRIS International , Avid Technology, Inc which sport a Zacks Rank #1 (Strong Buy), and j2 Global Inc. which carries a Zacks Rank #2 (Buy).
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 >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
We issued an updated research report on Harris Corporation on Aug 19.
Revenue Woes Continue in Q4
Harris Corporation reported lower-than-expected revenues in the fourth quarter of fiscal 2016. This was the fourth straight quarter in which the company’s top line missed the Zacks Consensus Estimate.
That the woes of the company are far from over is evident from its below-par guidance for fiscal 2017. The company expects earnings per share (on an adjusted basis) in the band of $5.70 to $5.90 for fiscal 2017. Following the disappointing guidance, the Zacks Consensus Estimate has been slashed 14 cents over the last 30 days to $5.79 per share. The company projects fiscal 2017 revenues in the band of $7.11 billion to $7.33 billion which is below the fiscal 2016 sales of $7.47 billion. The dreary view has caused the Zacks Consensus Estimate for revenues to be trimmed by $0.3 billion to $7.26 billion.
Foreign currency risks and economic slowdown in several major economies continue to hurt its top line. Weak energy markets have impacted the company's critical networks segment. Additionally though we are optimistic on Harris Corporation’s growth by acquisition strategy, we note that all acquisitions have certain integration risks associated with them. Failure to successfully assimilate the newly acquired companies into its own business model may result in trouble for the Zacks Rank # 4 (Sell) company.
However, the company does have positives to look up to like the significant number of order wins and its efforts to reward its shareholders through dividends/buybacks.
Stocks to Consider
Better-ranked stocks in the broader Computer & Technology space include ARRIS International , Avid Technology, Inc which sport a Zacks Rank #1 (Strong Buy), and j2 Global Inc. which carries a Zacks Rank #2 (Buy).
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 >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>