Harris Corp. (HRS) posted better-than-expected first-quarter profit, thanks to strong demand for its tactical radios deployed to the U.S. Army in Afghanistan. The company also lifted full-year profit forecast to reflect much higher-than-expected tactical radio orders from the U.S. Department of Defense.
Net income declined to $104.5 million, or $0.79 per share, from year-ago $118.7 million, or $0.88 per share. Excluding acquisition-related charges, earnings from ongoing operations were $109 million, or $0.83 per share. Analysts were looking for 77 cents per share. In the past four quarters, the company has beat earnings estimates by an average 4.6%.
Revenue rose to $1.2 billion from $1.17 billion last year. New orders in the quarter were a strong $1.5 billion, compared to $1.29 billion of new orders booked in the previous quarter.
"New orders, revenue and earnings exceeded our expectations in the first quarter as a result of strong performance in both the RF Communications and Government Communications Systems segments," said Howard Lance, chairman, president and chief executive officer of Harris.
Revenue from the RF Communications segment rose to $423.7 million from $415.2 million last year, thanks to significant increase in tactical radio orders, driven primarily by the rebound in U.S. Department of Defense procurements that began in the fourth quarter of fiscal 2009. Orders for the segment totaled $709 million, including $586 million in the Tactical Radio Communications business.
Revenue from Government Communications Systems rose to $667.7 million from $609.1 million in the comparable quarter last year.
On this upbeat note, the company boosted fiscal year expectations to earnings of $3.85 to $3.95 per share, excluding acquisition-related costs, from a previous range of $3.40 to $3.50 per share. GAAP earnings are now expected to be $3.74 to $3.84 per share, compared to prior projections of $3.25 to $3.40 per share. Analysts are looking for earnings of $3.37 per share.
Revenue for the fiscal year is now expected to be in a range of $5.1 billion to $5.2 billion, compared to a prior range of $5.0 billion - $5.1 billion. Analysts foresee $5.02 billion.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.