- 2Q18 revenue up 6% to $1.5 billion; orders up 13%
- 2Q18 EPS from continuing operations down 12% to $1.15 GAAP; up 21% to $1.67 non-GAAP
- 2Q18 results impacted by $52 million one-time, non-cash write-down of deferred tax assets and $26 million lower tax rate benefit from enactment of Tax Cuts and Job Act of 2017
- 1H18 revenue up 3% to $2.9 billion; EPS from continuing operations up 3% to $2.52 GAAP and up 15% to $3.05 non-GAAP
- 1H18 operating cash flow up 26% to $373 million; free cash flow up 34% to $330 million
- Solid operating performance plus tax reform resulting in increased EPS guidance for fiscal 2018
MELBOURNE, Fla. — (BUSINESS WIRE) — January 30, 2018 — Harris Corporation (NYSE: HRS) reported fiscal 2018 second quarter revenue of $1.54 billion, up 6% compared with the prior year. Earnings per diluted share from continuing operations was $1.15 (GAAP) and $1.67 (non-GAAP1), compared with $1.30 (GAAP) and $1.38 (non-GAAP1) in the prior year. Operating cash flow was $278 million and free cash flow was $258 million compared with operating cash flow of $252 million and free cash flow of $224 million in the prior year.
"We generated solid results in the second quarter driven by the strongest revenue growth we have achieved in more than seven years, including a 26% increase in tactical radio sales," said William M. Brown, chairman, president and chief executive officer. “In the first half, revenue and orders were up in all segments, and company book-to-bill was a robust 1.3. As a result of our strong performance and improved revenue outlook despite a lengthened continuing resolution, as well as benefits from tax reform, we have increased EPS guidance for the fiscal year."
Summary Financial Results |
|||||||||||||||||||||||||||||
($ millions, except per share data) | Second Quarter | First Half | |||||||||||||||||||||||||||
FY 2018 | FY 2017 | Change | FY 2018 | FY 2017 | Change | ||||||||||||||||||||||||
Orders | $ | 1,390 | $ | 1,234 | 13 | % | $ | 3,695 | $ | 2,973 | 24 | % | |||||||||||||||||
Revenue | $ | 1,535 | $ | 1,449 | 6 | % | $ | 2,948 | $ | 2,869 | 3 | % | |||||||||||||||||
(GAAP comparison) | |||||||||||||||||||||||||||||
Operating income | $ | 272 | $ | 277 | (2 | )% | $ | 544 | $ | 523 | 4 | % | |||||||||||||||||
Operating margin | 17.7 | % | 19.1 | % | (140)bps | 18.5 | % | 18.2 | % | 30bps | |||||||||||||||||||
Earnings per share | $ | 1.15 | $ | 1.30 | (12 | )% | $ | 2.52 | $ | 2.45 | 3 | % | |||||||||||||||||
(Non-GAAP comparison) | |||||||||||||||||||||||||||||
Operating income* | $ | 284 | $ | 290 | (2 | )% | $ | 556 | $ | 553 | 1 | % | |||||||||||||||||
Operating margin* | 18.5 | % | 20.0 | % | (150)bps | 18.9 | % | 19.3 | % | (40)bps | |||||||||||||||||||
Earnings per share* | $ | 1.67 | $ | 1.38 | 21 | % | $ | 3.05 | $ | 2.66 | 15 | % | |||||||||||||||||
*Reconciliations of GAAP to non-GAAP financial measures are provided in the attached tables. | |||||||||||||||||||||||||||||