Zacks’ analyst wrote, “Harris easily beat the Zacks Consensus Estimates in its third-quarter fiscal 2012. However, the company is facing several near-term concerns as the contraction of the U.S. and international defense expenditures may act as major threats to Harris. Though management remains confident that the company’s consolidated pipeline opportunity is still intact, we are not sure exactly when these contracts are going to be realized, given the ongoing political instability in Asian and African regions and a volatile global macro-economic environment. Nevertheless, Harris is the sole U.S. defense contractor, which manufactures integrated broadband enabled and software defined tactical radio for the U.S. military. The company’s innovative advanced radio and satellite communications platforms coupled with its share repurchase plan, may pave the way for its future growth. We maintain our Neutral recommendation on Harris. “
Harris traded down 1.22% on Wednesday, hitting $39.73. Harris has a 1-year low of $32.68 and a 1-year high of $49.74. The company has a market cap of $4.520 billion and a price-to-earnings ratio of 139.17.
Harris last released its earnings data on Tuesday, May 1st. The company reported $1.39 earnings per share for the quarter, beating the analysts’ consensus estimate of $1.34 by $0.05. Harris’s revenue was up 4.5% compared to the same quarter last year. Analysts expect that Harris will post $1.17 EPS next quarter.
A number of other firms have also recently commented on HRS. Analysts at Standpoint Research downgraded shares of Harris from a “buy” rating to a “hold” rating in a research note to investors on Wednesday, May 2nd. Separately, analysts at Lazard Capital downgraded shares of Harris from a “buy” rating to a “neutral” rating in a research note to investors on Wednesday, May 2nd. Finally, analysts at Needham & Company downgraded shares of Harris from a “buy” rating to a “hold” rating in a research note to investors on Tuesday, May 1st. They now have a $46.00 price target on the stock.
Harris Corporation (Harris), together with its subsidiaries, is an international communications and information technology company serving government and commercial markets in more than 150 countries.