Home / Financial Report / Harris Cuts FY 2016 Earnings, Revenue Forecasts on Slowing Middle East Demand

Harris Cuts FY 2016 Earnings, Revenue Forecasts on Slowing Middle East Demand

HARRISHarris Corp. (NYSE: HRS) — an S&P 500 company listed in Executive Mosaic’s GovCon Index — has cut full-year revenue guidance for a second consecutive quarter in its current fiscal year with this reduction due to a slowdown in tactical communications product demand from the Middle East.

The Melbourne, Florida-based military radio manufacturer now expects 12-month sales to total approximately $7.5 billion for its 2016 fiscal year compared to its prior outlooks of $7.6 billion-to-$7.68 billion issued in its second quarter financial statement and $7.67-billion-to-$7.83 billion in Harris’ first quarter report.

Harris also adjusted its earnings forecast to $5.70 per share, the lower end of its guidance issued in the second quarter of current its fiscal year.

A plunge in oil prices led Harris to issue a writedown on its maritime communications business for the second quarter that swung the company to a net loss then and scale back revenue forecasts.

Revenue for the third quarter ended April 1 totaled $1.91 billion to fall just short of Wall Street’s $1.92 billion outlook and register an approximate 64.65 percent increase from the prior year period on contributions from Exelis, which Harris purchased for $4.75 billion in May 2015.

Organic growth without Exelis’ additions fell 3.04 percent from the prior year period to $1.91 billion.

Excluding acquisition costs, Harris reported third quarter earnings of $1.45 per share to exceed analyst forecasts by 6 cents and $1.36 EPS when including items related to the Exelis transaction.

Third quarter profit increased 34.92 percent year-over-year to $170 million.

As of Monday’s close, shares in Harris are down 6.95 percent from the start of the year and up one-half percent over 12 months compared to the S&P 500 composite index’s respective gain of 1.83 percent for 2016 to-date and decline of 1.27 percent for 52 weeks.

Check Also

Kevin McDonnell to Join AeroVironment as SVP, CFO

Kevin McDonnell, former senior vice president and chief financial officer of JAMS, has been appointed to the same positions at unmanned aircraft system maker AeroVironment (Nasdaq: AVAV). His appointment is effective Feb. 10 and he will succeed Brian Shackley, who has held the CFO role at AeroVironment on an acting basis since October, the company said Thursday.

Army Engineers Select Brayman for $320M Bluestone Dam Rehabilitation Contract

Brayman Construction has landed a potential nine-year, $319.6M contract from the U.S. Army Corps of Engineers to renovate recreational areas and equipment at the Bluestone Dam's stilling basin in West Virginia.