Want To Invest In Harris Corporation (NYSE:HRS)? Here’s How It Performed Lately

Measuring Harris Corporation’s (NYSE:HRS) track record of past performance is a useful exercise for investors. It enables us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess HRS’s recent performance announced on 28 December 2018 and weigh these figures against its long-term trend and industry movements.

View our latest analysis for Harris

How Did HRS’s Recent Performance Stack Up Against Its Past?

HRS’s trailing twelve-month earnings (from 28 December 2018) of US$864m has jumped 39% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 12%, indicating the rate at which HRS is growing has accelerated. How has it been able to do this? Let’s see whether it is solely attributable to industry tailwinds, or if Harris has seen some company-specific growth.

NYSE:HRS Income Statement, April 9th 2019
NYSE:HRS Income Statement, April 9th 2019

In terms of returns from investment, Harris has invested its equity funds well leading to a 25% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 11% exceeds the US Aerospace & Defense industry of 7.1%, indicating Harris has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Harris’s debt level, has increased over the past 3 years from 11% to 16%.

What does this mean?

Though Harris’s past data is helpful, it is only one aspect of my investment thesis. While Harris has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I recommend you continue to research Harris to get a better picture of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for HRS’s future growth? Take a look at our free research report of analyst consensus for HRS’s outlook.
  2. Financial Health: Are HRS’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

NB: Figures in this article are calculated using data from the trailing twelve months from 28 December 2018. This may not be consistent with full year annual report figures.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.