Harris Corporation Reports Fiscal 2018 First Quarter Results With Robust Orders Across All Segments

  • EPS from continuing operations up 19%, 8% versus non-GAAP, on flat revenue
  • Orders of $2.3 billion; book-to-bill of 1.6
  • Operating cash flow $95 million; free cash flow $72 million
  • Reiterated FY18 revenue, EPS and free cash flow guidance

MELBOURNE, Fla. — (BUSINESS WIRE) — October 31, 2017 — Harris Corporation (NYSE: HRS) reported fiscal 2018 first quarter revenue of $1.41 billion, flat compared with prior year. Earnings per diluted share from continuing operations increased to $1.38 from $1.16 (GAAP) and $1.28 (non-GAAP1). Operating margin expanded to 19.2% from 17.3% (GAAP) and 18.5% (non-GAAP1).

"We are off to a good start in fiscal 2018 with solid first quarter results, including record orders of $2.3 billion and a book-to-bill of 1.6,” said William M. Brown, chairman, president and chief executive officer. “In addition, our focus on productivity and program execution contributed to 8% EPS growth and drove 70 basis points of margin expansion. These results mark good progress against our strategic priorities and position us to achieve our guidance for the year."

Summary Financial Results

               
  ($ millions, except per share data)   First Quarter
      FY 2018   FY 2017   Change
  Orders   $ 2,305     $ 1,739     33 %
  Revenue   $ 1,413     $ 1,420      
               
  (GAAP to GAAP comparison)            
  Operating income   $ 272     $ 246     11 %
  Operating margin   19.2 %   17.3 %   190 bps
  Earnings per share   $ 1.38     $ 1.16     19 %
               
  (GAAP to Non-GAAP comparison)            
  Operating income*   $ 272     $ 263     3 %
  Operating margin*   19.2 %   18.5 %   70 bps
  Earnings per share*   $ 1.38     $ 1.28     8 %
               
  *Reconciliations of GAAP to non-GAAP financial measures are provided in the attached tables.
   

Revenue was flat, as growth in Space and Intelligence Systems and Electronic Systems was offset by lower volume in Communication Systems. The improvements in GAAP operating income, margin and EPS were primarily due to Exelis acquisition-related charges incurred in the first quarter of fiscal 2017. Non-GAAP operating income grew 3% and margin expanded by 70 basis points (bps) from strong execution and program performance across all three segments and higher pension income, partially offset by a $14 million unfavorable impact from the ADS-B program transition from build-out to sustainment. The 8% EPS increase was driven by higher operating income and lower share count, partially offset by a less favorable tax rate. The 33% orders increase resulted in a book-to-bill of 1.6.

Communication Systems

                   
  ($ millions)       First Quarter
          FY 2018   FY 2017   Change
  Revenue       $ 410     $ 430     (5 )%
  Operating income       $ 118     $ 118      
  Operating margin       28.8 %   27.4 %   140 bps
                         

1 | 2 | 3 | 4 | 5 | 6  Next Page »



Review Article Be the first to review this article


Featured Video
Latest Blog Posts
Alex Carrick, Chief Economist at ConstructConnectThe AEC Lens
by Alex Carrick, Chief Economist at ConstructConnect
10 Mid-January 2021 Economic Nuggets
Jobs
Sr. Application Engineer for Watts Water Technologies at San Antonio, Texas
Sr. Design Technician for CEC at Oklahoma City, Oklahoma
Senior Highway Engineer for RS&H at Jacksonville, Florida
Systems Engineer for Watts Water Technologies at Blauvelt, New York
Business Analyst - eCommerce for ESRI at Redlands, California
ArcGIS Online Product Engineer for REST API for ESRI at Redlands, California
Upcoming Events
DCW - Digital Construction Week at Excel London United Kingdom - May 19 - 20, 2021
World Architecture Festival at United States - Jun 23 - 25, 2021
ICSD 2021 : 9th International Conference on Sustainable Development, 8 - 9 September Rome, Italy at Roma Eventi, Pontifical Gregorian University Piazza della Pilotta, 4 Rome Rome Italy - Sep 8 - 9, 2021
Urban Planning & Architectural Design for Sustainable Development – 6th Edition at University of Florence Florence Italy - Sep 14 - 16, 2021
Kenesto: 30 day trial
CADalog.com - Countless CAD add-ons, plug-ins and more.



© 2021 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
TechJobsCafe - Technical Jobs and Resumes EDACafe - Electronic Design Automation GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise