Stock Monitor: Airgain Post Earnings Reporting
LONDON, UK / ACCESSWIRE / June 1, 2018 / If you want access to our free earnings report on Harris Corp. (NYSE: HRS), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=HRS. Harris reported its financial results for third quarter of fiscal year 2018 (Q3 FY18) on May 02, 2018. The provider of technology-based solutions surpassed market estimates for revenue and earnings for third quarter 2018. Additionally, the Company updated its guidance for fiscal year 2018. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
During Q3 FY18, Harris' revenue advanced 5.3% to $1.57 billion compared to $1.49 billion in Q3 FY17, driven by growth in its all segments. The Company's reported revenue number exceeded analysts' estimates of $1.55 billion. Moreover, the Company's orders increased 27% to 1.87 billion in Q3 FY18 compared to 1.48 billion in Q3 FY17.
In the reported quarter, Harris incurred cost of product sales and services of $1.0 billion versus $958 million in the year ago comparable period. The Company reported gross margin of $561 million in Q3 FY18 compared to $531 million in Q3 FY17.
Harris' engineering, selling, and administrative expenses increased 19% to $305 million in Q3 FY18 versus $256 million in Q3 FY17. The Company's operating income declined 7% to $256 million in the reported quarter compared to $275 million in the year ago corresponding period.
During the third quarter 2018, Harris reported 24% growth in net income to $203 million compared to $164 million in the third quarter 2017. In the reported quarter, the Company's earnings per share (EPS) surged 27.5% to $1.67 in comparison to $1.31 in the year ago same period. The Company's adjusted EPS were $1.67 in Q3 FY18 compared to $1.38 in Q3 FY17, beating market projection of $1.62.
Harris' Segments Details
Harris operates through three segments: (i) Communication Systems; (ii) Electronic Systems; and (iii) Space and Intelligence Systems.
In the reported quarter, the Communication Systems segment aggregated revenue of $481 million compared to $461 million in the same quarter of last year, increasing 4% on a y-o-y basis. The improvement was driven by growth in Tactical Communications and Night Vision. The segment's operating income grew by 5% to $147 million in Q3 FY18 versus $140 million in Q3 FY17.
Harris' revenue from Electronic Systems unit increased 10% to $609 million in Q3 FY18 compared to $553 million in Q3 FY17, primarily due to higher volume in Avionics with growth in F-35 and other international platforms, growth in Electronic Warfare (EW) on F-16 and F/A-18 platforms and in C4ISR from the ramp of U.K. robotics and the UAE battle management system. The segment's operating profit decreased 3% to $112 million in the reported quarter compared to $115 million in prior year's corresponding period.
During Q3 FY18, the Space and Intelligence Systems unit generated revenue of $482 million, up 1% compared to $475 million in Q3 FY17, led by growth in Classified programs, reflecting the ramp of small satellites, ground-based processing adjacency and space surveillance programs. The segment's operating income advanced 8% to $82 million in the reported quarter in comparison to $76 million in the same period of the prior fiscal year.
As of March 31, 2018, Harris' cash and cash equivalents of $443 million compared to $302 million as of March 31, 2017. In the reported quarter, the Company's cash inflow from operating activities was $230 million versus $489 million in the year ago comparable period. The Company generated adjusted free cash flow of $164 million in Q3 FY18 compared to $121 million in Q3 FY17, increasing 26% on a y-o-y basis. During the third quarter 2018, the Company repurchased 312,902 shares of its common stock at a total cost of $47 million.
For fiscal year 2018, Harris expects revenue to be approximately $6.14 billion, reflecting a y-o-y increase of 4% from the earlier estimates of $6.08 billion - $6.14 billion. The Company anticipates EPS to be in the band of $5.93 - $5.98 for FY18, up from previous expectations of $5.78 - $5.98. In addition, the Company expects adjusted EPS to be in range of $6.45 - $6.50, instead of prior expectations of $6.30 - $6.50 in FY18. The Company anticipates adjusted free cash flow between $900 million to $925 million, up from the previous guidance of approximately $900 million.
Stock Performance Snapshot
May 31, 2018 - At Thursday's closing bell, Harris' stock declined 1.49%, ending the trading session at $150.47.
Volume traded for the day: 758.47 thousand shares.
Stock performance in the previous six-month period – up 4.35%; past twelve-month period – up 34.16%; and year-to-date – up 6.23%
After yesterday's close, Harris' market cap was at $17.98 billion.
Price to Earnings (P/E) ratio was at 27.45.
The stock has a dividend yield of 1.52%.
The stock is part of the Technology sector, categorized under the Communication Equipment industry. This sector was up 0.1% at the end of the session.
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