Harris Corporation (HRS) is down more than 6% today as analysts anticipate poor earnings results, which are due to be released after the close of trading on Wednesday, and lowered earnings guidance.
The concerns in several analyst reports are centered on the company’s tactical radio business, known as RF Communications. RF Communications’ radios are like the iPhone of walkie-talkies. Mainly used by the military, the radios are encrypted to prevent eavesdropping and have the ability to send data and videos. Aside from working with the military, RF Communications has a public safety and professional communications business.
This high-margin business segment was a major driver of Harris’ earnings for the past several years, but is now faced with order delays that are largely a result of the change in administration and the shift in military focus to Afghanistan from Iraq.
HRS shares finished the day -7.84%
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Peter J. Lazaroff, Investment Analyst
Tuesday, August 11, 2009
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