Harris Lowers FY 2016 Revenue Outlook on Energy Price Declines, Lifts Earnings Guidance Despite 2Q Loss

HARRISHarris Corp. (NYSE: HRS) — one of 30 companies listed in Executive Mosaic’s GovCon Index — has cut revenue guidance for its 2016 fiscal year on global declines in oil prices that have affected the company’s outlook for the CapRock remote communication services business.

The Melbourne, Fla.-based communications technology manufacturer — which runs its fiscal calendar on a July-June basis — lowered sales guidance in its second quarter financial statement to between $7.6 billion and $7.68 billion from the prior $7.67 billion-to-$7.83 billion range.

Crude oil futures in New York have plummeted 48.62 percent over the past 12 months and brent crude in London has fallen 49.35 percent in 52 weeks.

The company recorded a $328 million writedown, or $2.63 per share on its second quarter results to reflect the restated outlook on its CapRock business.

Harris reported a net loss of $1.23 per share, or $149 million, with the writedown and $1.84 billion in revenue for the October-December period versus the consensus Wall Street analyst forecast of $1.36 EPS and $1.89 billion in sales for the second quarter.

The company said second quarter profit was $1.49 earnings per share when excluding the writedown, or $187 million, to top the analyst outlook by 13 cents.

Despite the writedown, Harris raised its full-year earnings guidance to a range of $5.70-$5.80 per share from the prior $5.60-to-$5.80 range.

As of Monday’s close, shares in Harris were flat from the year’s start and had risen 29.18 percent over 12 months.

You may also be interested in...


DISA Seeks Potential FAMIS-WCF Financial System Sustainment, Enhancement Support Sources

The Defense Information Systems Agency has started to seek information on potential vendors that could help enhance and provide sustainment support for DISA’s Financial Accounting Management Information System for the Working Capital Funds platform.

Potomac Officers Club Hosts PNT Superiority on the Future Battlefield

Potomac Officers Club’s Ensuring PNT Superiority on the Future Battlefield Hosted Expert Panel to Discuss Defense Resilience and Capabilities

During Potomac Officers Club’s Ensuring PNT Superiority on the Future Battlefield Virtual Event, an expert panel, comprised of notable leaders across the defense sector, took the stage to discuss how military PNT capabilities have become vital to the nation’s ability to shape the global environment, deter aggression, and fight and win wars, now and in the future.