Harris (HRS) To Report Q1 Earnings: Is A Surprise In Store?
Zacks Investment Research | Oct 27, 2016 11:14PM ET
Harris Corporation (NYSE:HRS) is slated to release first-quarter fiscal 2017 results on Nov 1, before the market opens.
Last quarter, Harris posted a positive earnings surprise of 0.69%. Moreover, the company’s earnings surpassed the Zacks Consensus Estimate in each of the previous four quarters, with an average beat of 4.04%.
Let’s see how things are shaping up for this announcement.
Factors at Play
We are impressed with Harris’ credible customer list and new collaborations. The company’s rapid innovation and customer centric approach should favor top-line growth. We are also positive on the company’s efforts to reward shareholders through dividends/buybacks. Harris increased its quarterly dividend in Aug 2016 by 6% and this represents the 15th consecutive annual dividend hike by the company.
Harris has high dependence on U.S. government projects, which is a major concern. In case of unforeseen events, high customer concentration increases the risks of a company. Another concern for Harris is the possibility of failing to derive the desired synergies from its acquisitions. Further, adverse foreign currency exchange movement is a risk to the bottom line and economic slowdown in several major economies raise caution. The company also faces competition in the sector from the likes of Arc Group Worldwide (NASDAQ:ARCW) and Viasat Inc. (NASDAQ:VSAT) .
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 Zacks Investment Research
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