Harris 2Q earnings skid on charge
Harris 2Q net income falls, adjusted results top expectations; lowers fiscal 2013 outlook
Communications and information technology company Harris said Tuesday that its fiscal second-quarter net income fell 64 percent, dragged down by an impairment charge tied to the sale of its broadcast division. Its adjusted results topped analysts' estimates, however.
The Melbourne, Fla. company also lowered its fiscal 2013 earnings from continuing operations and revenue forecasts because it expects slower government spending.
Harris Corp. said it earned $48.5 million, or 43 cents per share, for the period ended Dec. 28. That compares with $133.1 million, or $1.16 per share, a year earlier.
The current quarter included an impairment charge of $98 million related to the $225 million sale of Broadcast Communications to an affiliate of The Gores Group LLC. Harris said it expects the sale to close early this year.
Stripping out the impairment charge and other items, earnings from continuing operations were $1.25 per share.
Analysts forecast earnings of $1.20 per share, according to a FactSet survey.
Revenue slipped 2 percent to $1.29 billion from $1.31 billion as its RF Communications unit reported lower revenue. Wall Street predicted $1.31 billion in revenue.
Orders for the quarter climbed 30 percent to $1.36 billion.
For fiscal 2013, Harris now foresees earnings from continuing operations in a range of $5 to $5.20 per share. Its prior guidance was for $5.10 to $5.30 per share.
Revenue is now anticipated to be down 2 percent to 4 percent. Previously, Harris predicted revenue would be flat to up 2 percent. Based on fiscal 2012's revenue of $5.45 billion, the new outlook implies $5.23 billion to $5.34 billion.
Analysts expect earnings of $5.14 per share on revenue of $5.42 billion.
Its shares finished at $49.25 on Monday.
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