Harris Corp.'s (HRS) fiscal third-quarter profit declined 16% as
the company reported lower margins and weaker-than-expected revenue
growth, although adjusted earnings topped analysts' estimates.
The maker of digital multiband radios has said it expects recent
acquisitions and core-business expansions will help drive near term
results. The company last month closed on its acquisition of
privately held software maker Carefx for $155 million and also
completed its $397.5 million deal to buy Schlumberger Ltd.'s (SLB)
satellite-communications services unit.
For the quarter ended April 1, Harris reported a profit of
$139.5 million, or $1.09 a share, down from $166.2 million, or
$1.26 a share, a year earlier. Excluding integration costs and
other impacts, earnings fell to $1.16 from $1.29. Revenue climbed
6.3% to $1.41 billion.
Analysts polled by Thomson Reuters expected a profit of $1.15 on
revenue of $1.51 billion.
Gross margin fell to 36.6% from 38.3%.
Revenue from RF Communications, the largest top-line
contributor, inched down 0.1% while earnings fell 13%. At the
government communications unit, revenue was up 1% as profit grew
2.4%.
Shares of Harris, which reaffirmed its full-year outlook, fell
0.5% to $52.72 in after-hours trading.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com