Harris' Search for a New CEO Begins - Analyst Blog
May 25 2011 - 6:45AM
Zacks
A leading supplier of
communications equipments and services, Harris
Corp. (HRS) is currently looking for a successor to Howard
L.Lance, the current chairman, president and CEO. Lance, aged 55,
joined Harris in 2003 and plans to retire in the second half of
2012.
The company has appointed an
executive search firm to aid them in the process of selecting the
right candidate for the highly recognized post.
Lance, the former president of NCR
Corporation succeeded Phillip W. Farmer as the president and CEO of
Harris in January 2003 and became the chairman of the company later
that year.
During his tenure, the company
witnessed consistent growth across all its operations. Revenue and
earnings per share (EPS) grew at a six-year (2004-2010) compounded
annual growth rate (CAGR) of 18% and 54%, respectively.
Harris reported modest third
quarter 2011 financial results, where GAAP net income in the
quarter was $140 million or $1.09 per share compared with a net
income of $166 million or $1.26 per share in the year-ago quarter,
while the quarterly adjusted (excluding special charges) EPS of
$1.16 beat the Zacks Consensus Estimate by a penny. However,
consolidated revenue for the third quarter of 2011 was $1,413.3
million, which failed to beat the Zacks Consensus Estimate of
$1,514.0 million but improved 6.3% year over year.
Harris operates in a highly
competitive communication equipment industry and faces intense
competition from Boeing Co. (BA), General
Dynamics Corp. (GD) and Raytheon Co.
(RTN).
We thus maintain our long-term
Neutral recommendation for Harris Corporation. Currently, Harris
Corporation has a Zacks #3 Rank, implying a short-term Hold rating
on the stock.
BOEING CO (BA): Free Stock Analysis Report
GENL DYNAMICS (GD): Free Stock Analysis Report
HARRIS CORP (HRS): Free Stock Analysis Report
RAYTHEON CO (RTN): Free Stock Analysis Report
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