DOW JONES NEWSWIRES
Harris Corp.'s (HRS) fiscal first-quarter profit jumped a
much-bigger-than-expected 57% amid increasing sales and sharply
higher margins.
The maker of digital multiband radios also raised its earnings
forecast for the year by 20 cents a share to a range of $4.80 to
$4.90 as it sees revenue at the high end of its earlier
estimate.
Harris has seen sales to the U.S. Defense Department fuel its
top line as the Pentagon seeks to save money by using cheaper
off-the-shelf technology that has already been tested in commercial
markets. It is also vying for broader contracts in cybersecurity,
health care and public safety, both for governments and private
industry.
For the period ended Oct. 1, Harris posted a profit of $163.9
million, or $1.27 a share, up from $104.5 million, or 79 cents a
share, a year earlier. Excluding acquisition costs, earnings rose
to $1.28 from 82 cents. The company in August forecast 95 cents to
$1, mostly trailing analysts' then-estimates.
Revenue jumped 17% to $1.41 billion and was up 10% excluding
acquisitions. Analysts polled by Thomson Reuters most recently
expected $1.43 billion.
Gross margin climbed to 37.3% from 32.5%.
Harris' government communications business, the largest top-line
contributor, rose 10% on that business amid acquisitions, but
earnings slid 8.6%. At the defense operations, profit doubled as
revenue was up 34%.
Orders fell 13% to $1.3 billion.
Shares closed Monday up 2.4% at $44.83 and were inactive
after-hours.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240;
matthew.jarzemsky@dowjones.com