Yesterday’s Consumer Pops and Drops: HAR, BC, WRK, UA, and INGR
Price movement of Harman International Industries
Harman International Industries (HAR) has a market capitalization of $4.9 billion. HAR fell by 13.5% to close at $69.01 per share as of January 28, 2016. Its price movements on a weekly, monthly, and YTD basis are -9.6%, -26.7%, and -26.8%, respectively.
Technically, the stock has broken its support and is trading below all of its moving averages. Currently, HAR is trading 18.7% below its 20-day moving average, 25.3% below its 50-day moving average, and 36.0% below its 200-day moving average.
The Guggenheim S&P Equal Weight Consumer Discretionary ETF (RCD) invests 1.1% of its holdings in HAR. The ETF tracks an equal-weighted index of large-cap US consumer discretionary stocks drawn from the S&P 500. The YTD price movement of RCD is -7.0% as of January 27, 2016.
The Guggenheim Raymond James SB-1 Equity ETF (RYJ) invests 0.71% of its holdings in HAR. The ETF tracks an equal-weighted index of US-listed stocks expected to achieve 15% total returns and to outperform the S&P 500 over the next 6–12 months.
The competitors of Harman International Industries and their market capitalizations are as follows:
- Apple (AAPL) — $521.7 billion
- Sony (SNE) — $25.3 billion
Performance of Harman International Industries in fiscal 2Q16
Harman International Industries reported fiscal 2Q16 net sales of $1,772.2 million, a rise of 11.9% compared to net sales of $1,583.5 million in fiscal 2Q15. Sales of its connected car and lifestyle audio businesses rose by 2.1% and 20.4%, respectively, and sales of its professional solutions business fell by 6.7% in fiscal 2Q16.
The company’s cost of sales as a percentage of net sales and gross profit rose by 1.5% and 10.5%, respectively, in fiscal 2Q16 compared to fiscal 2Q15. Its non-GAAP (generally accepted accounting principles) net income and non-GAAP EPS (earnings per share) rose to $134.2 million and $1.84, respectively, in fiscal 2Q16, compared to $126.0 million and $1.79, respectively, in fiscal 2Q15.
Meanwhile, its cash and cash equivalents fell by 32.6%, and its inventories rose by 26.2% in fiscal 2Q16 compared to fiscal 4Q15. Its current ratio rose to 1.43, and its debt-to-equity ratio fell to 1.36 in fiscal 2Q16 compared to 1.36 and 1.45, respectively, in fiscal 4Q15.
The company has declared a quarterly cash dividend of $0.35 per share on its common stock. The dividend will be paid on February 23, 2016, to each shareholder on record at close of business on February 8.
The price-to-earnings and price-to-book value ratios of HAR are 14.2x and 2.1x, respectively, as of January 28, 2016.
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