Is A Beat In The Cards For Harris (HRS) In Q3 Earnings?
Zacks Investment Research | Apr 28, 2017 07:35AM ET
Harris Corporation (NYSE:HRS) is slated to release third-quarter fiscal 2017 results on May 3, before the market opens.
In the last quarter, the company reported a positive earnings surprise of 3.65%. Moreover, the company’s earnings surpassed the Zacks Consensus Estimate in each of the previous four quarters, with an average beat of 2.72%.
Harris gained 1.43% over the last one month, outperforming the Zacks categorized Earnings ESP Filter .
Zacks Rank: Harris carries a Zacks Rank #3 (Hold). Please note that stocks with Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates.
Meanwhile, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
Factors at Play
We are impressed with the company's efforts to reward shareholders. During the fiscal second quarter, the company’s board of directors declared a quarterly cash dividend of 53 cents per share. The company's efforts to expand also encourage us. In Feb 2017, the company launched Falcon III RF-300H wideband manpack radio that provides higher security and better wideband HF.
In spite of the tailwinds, the company continues to grapple with revenue-related issues. Though positive on Harris' growth by acquisition strategy, we note that all acquisitions involve integration risks. Failure to successfully integrate the newly acquired companies into its own business model may result in difficulties for Harris. Moreover, weakness in international markets may result in lower-than-expected sales of tactical radio products. Also, Harris is a highly leveraged company which again is a dampener.
Harris Corporation Price and EPS Surprise
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