Harris Corporation, which is a defense contractor and IT services provider for the government, defense, and commercial sectors, was the S&P 500’s top gainer on January 30. After pulling back for two weeks, Harris Corporation regained strength and surged this week. Harris Corporation started this week on a stronger note and rose to a fresh record high price levels on Tuesday.
The buying pressure in Harris Corporation increased after the release of the stronger-than-expected 2Q18 earnings report. According to management, the EPS (earnings per share) in 2Q18 was $1.67—higher than analysts’ estimated EPS of $1.4. The revenues in 2Q18 were $1.53 billion, which is higher than analysts’ forecast of $1.48 billion. The revenues from the Communication Systems segment recorded 13% growth YoY (year-over-year). The revenues from Electronic Systems recorded 2% growth YoY. On the other hand, the revenues from the Space and Intelligence Systems segment declined 1% YoY.
Amid the new tax reform bill, Harris Corporation plans to increase its employee pension fund by $300 million and invest $20 million into innovation. On January 30, Harris Corporation gained 6.2% and closed the day at $156.31. Harris Corporation is part of the S&P 500 Information Technology sector, which declined 1.0% on January 30.