From William Trent, CFA of Stock Market Beat
Harris Corporation (NYSE: HRS) reported revenue for the third quarter of fiscal year 2007 increased 22 percent to $1.072 billion, compared to $881 million in the prior- year quarter. GAAP net income increased to $214.9 million or $1.52 per diluted share. Non-GAAP net income-excluding a significant gain and charges associated with the Harris Stratex Networks transaction, and charges associated with cost-reduction actions in the Broadcast Communications segment-increased to $100.5 million, or $.72 per diluted share, a 24 percent increase when compared to non-GAAP income in the prior-year quarter.
Analysts were expecting $0.70 on $1.07 billion in revenues. However, guidance for the remainder of the year and for next year failed to match consensus hopes:
Revised non-GAAP earnings guidance for fiscal year 2007 is a range of $2.77 to $2.81 per diluted share. The company also provided initial earnings guidance for fiscal year 2008, beginning June 30, 2007, of $3.20 to $3.30 per diluted share, representing an increase of approximately 17 percent.
“In fiscal year 2008, we expect to achieve revenue growth in a range of 10 to 15 percent, including the full-year contribution of Harris Stratex Networks,” [CEO Howard] Lance said.
Analysts were targeting revenue growth of 12.6% for 2008, along with EPS of $2.82 this year and $3.18 next. The company looks a bit short on all three counts.
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