Harris Corp. (NYSE: HRS) — one of 30 companies listed in Executive Mosaic’s GovCon Index — has cut revenue guidance for its 2016 fiscal year on global declines in oil prices that have affected the company’s outlook for the CapRock remote communication services business.
The Melbourne, Fla.-based communications technology manufacturer — which runs its fiscal calendar on a July-June basis — lowered sales guidance in its second quarter financial statement to between $7.6 billion and $7.68 billion from the prior $7.67 billion-to-$7.83 billion range.
Crude oil futures in New York have plummeted 48.62 percent over the past 12 months and brent crude in London has fallen 49.35 percent in 52 weeks.
The company recorded a $328 million writedown, or $2.63 per share on its second quarter results to reflect the restated outlook on its CapRock business.
Harris reported a net loss of $1.23 per share, or $149 million, with the writedown and $1.84 billion in revenue for the October-December period versus the consensus Wall Street analyst forecast of $1.36 EPS and $1.89 billion in sales for the second quarter.
The company said second quarter profit was $1.49 earnings per share when excluding the writedown, or $187 million, to top the analyst outlook by 13 cents.
Despite the writedown, Harris raised its full-year earnings guidance to a range of $5.70-$5.80 per share from the prior $5.60-to-$5.80 range.
As of Monday’s close, shares in Harris were flat from the year’s start and had risen 29.18 percent over 12 months.
