Harris Fourth Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component Harris (NYSE:HRS) will unveil its latest earnings on Tuesday, July 31, 2012. Harris Corporation is an international communications and information technology company serving commercial markets and government.

Harris Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.42 per share, a rise of 14.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.53. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.42 during the last month. For the year, analysts are projecting net income of $5.21 per share, a rise of 7.9% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 5 cents, coming in at profit of $1.39 a share versus the estimate of net income of $1.34 a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the third quarter, the company swung to a loss of $353.2 million ($3.15 a share) from a profit of $139.5 million ($1.09) a year earlier, but beat analyst expectations. Revenue rose 4.4% to $1.48 billion from $1.41 billion.

Wall St. Revenue Expectations: On average, analysts predict $1.43 billion in revenue this quarter, a decline of 14.4% from the year-ago quarter. Analysts are forecasting total revenue of $5.44 billion for the year, a decline of 8.1% from last year’s revenue of $5.92 billion.

Stock Price Performance: Between April 30, 2012 and July 25, 2012, the stock price fell $5.20 (-11.4%), from $45.54 to $40.34. The stock price saw one of its best stretches over the last year between February 22, 2012 and March 1, 2012, when shares rose for seven straight days, increasing 3.5% (+$1.47) over that span. It saw one of its worst periods between May 8, 2012 and May 18, 2012 when shares fell for nine straight days, dropping 7.6% (-$3.18) over that span.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 14.5% in the fourth quarter of the last fiscal year, 3.9% in the first quarter and 0.5% in the second quarter before increasing again in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.47 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Analyst Ratings: There are mostly holds on the stock with nine of 10 analysts surveyed giving that rating.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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