Harris Q1 Results Top Estimates, Backs 2015 Outlook

(RTTNews) - Communications equipment maker Harris Corp. (HRS) reported Tuesday a profit for the first quarter of fiscal 2015 that edged down from last year, reflecting a small revenue drop. However, both earnings per share from continuing operations and quarterly revenues topped analysts' expectations. The company also reaffirmed its outlook for the full-year 2015.

"First quarter results reflected strong revenue and orders growth in Government Communications Systems and in RF Communications' international tactical radio business. Operating performance was solid and resulted from lowering costs through operational excellence initiatives, focusing on program execution, and providing the marketplace with innovative solutions," Chairman, President and CEO William Brown said in a statement.

The Melbourne, Florida-based company reported net income of $125.1 million for the first quarter, edging down from $125.8 million in the prior-year quarter, while earnings per share grew to $1.18 from last year's 1.16.

Income from continuing operations for the quarter declined to $125.1 million from $127.4 million in the year-ago quarter, while earnings per share remained flat with last year at $1.18.

On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $1.09 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the quarter declined to $1.16 billion from $1.19 billion in the same quarter last year, but topped seven Wall Street analysts' consensus estimate of $1.15 billion. Orders in the quarter totaled $1.11 billion.

RF communications revenue decreased to $387 million from $423 million, with tactical communications revenue declining 9 percent and public safety revenue dropping 6 percent.

Government communications systems revenue increased 12 percent to $461 million, while integrated network solutions revenue decreased 13 percent to $326 million in the year-ago quarter, primarily due to the wind-down of two IT Services programs.

Further, the company also increased its dividend 12 percent and used $100 million of cash to repurchase shares during the quarter.

Looking ahead to fiscal 2015, the company continues to expect earnings from continuing operations in the range of $4.75 to $5.00 per share on a revenue decline in a range of 1 to 3 percent. Street is currently looking for full-year 2015 earnings of $4.85 per share on a revenue decline of 2.7 percent to $4.88 billion.

In Tuesday's regular trading session, HRS is currently trading at $67.86, down $0.13 or 0.19% on a volume of 0.28 million shares.