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Harris (HRS) to Report Q3 Earnings: What's in the Offing?

Zacks Equity Research

Harris Corporation HRS is scheduled to report third-quarter fiscal 2019 financial results on May 1, before the opening bell. In the last reported quarter, the company delivered a positive earnings surprise of 2.6%. Notably, the technology and communications company surpassed the Zacks Consensus Estimate in each of the last four quarters, the average beat being 2.9%.

Let’s find out how things are shaping up prior to the announcement —

What Our Model Says

Our proven model shows that Harris is likely to beat earnings this quarter as it has the two key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is exactly the case here as you will see below:

Earnings ESP: Harris’ Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.69% as the former is pegged at $2.05 and the latter at $2.04. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Harris Corporation Price and EPS Surprise

Harris Corporation Price and EPS Surprise

Harris Corporation price-eps-surprise | Harris Corporation Quote

Zacks Rank: Harris currently has a Zacks Rank #3. This increases the predictive power of ESP.

Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.

Factors in Play

During the fiscal third quarter, Harris secured a $75 million order from the Marine Corps (“USMC”). The deal was part of the Navy Portable Radio Program five-year indefinite delivery/indefinite quantity contract. The move is expected to have supported Harris’ top-line performance in the to-be-reported quarter.

Harris would provide MUOS (Mobile User Objective System) narrowband satellite communication upgrades to the agency’s Falcon III AN/PRC-117G manpack radio fleet. It would also make available allied devices for the AN/PRC-117G radios currently fielded by the USMC, including antennas. This would enable the radios to support satellite communication while moving, when connected to the MUOS satellites.

Other Stocks to Consider

Here are some other companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Upland Software, Inc. UPLD with an Earnings ESP of +0.32% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cigna Corp. CI with an Earnings ESP of +5.14% and a Zacks Rank #2.

Prudential Financial, Inc. PRU with an Earnings ESP of +1.21% and a Zacks Rank #2.

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