Harris Earns $1.12 Per Share

This morning, Harris ($HRS) reported fiscal third-quarter earnings of $1.12 per share which was inline with expectations. As the company warned us, the sequester is putting the squeeze on them. Those issues aside, the business fundamentals are strong.

“Third quarter results were in line with our preliminary release issued April 11 and weaker than previously expected primarily due to U.S. and international tactical radio procurement delays,” said William M. Brown, president and chief executive officer. “U.S. Government funding constraints resulting from the continuing resolution were magnified when sequestration was triggered. Additionally, in the international market several key tactical radio orders have been pushed to later in the year or early next fiscal year.”

“We recently announced company-wide restructuring actions that are expected to generate net annualized cost savings of approximately $40 to $50 million. These cost savings, combined with benefits from our ongoing focus on operational excellence and reduced discretionary spending, will allow us to be successful in a challenging government market environment while continuing to invest in R&D and fund strategic growth initiatives.”

Harris reiterated its full-year guidance of $4.60 to $4.70 per share.

Posted by on April 30th, 2013 at 8:30 am

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