Harman Rises Most in Four Months as Profit Beats Estimates
Harman International Industries Inc. (HAR) rose the most in four months after the maker of car audio systems reported third-quarter profit that exceeded analysts’ estimates and announced a record $2 billion contract.
Harman posted quarterly profit of 74 cents a share excluding a tax-related gain and costs for restructuring, beating the 67-cent average of three estimates compiled by Bloomberg. The contract is from a “luxury European automaker” for systems that provide in-car information and entertainment, Chief Executive Officer Dinesh Paliwal said in an interview, without identifying that company.
The value to Stamford, Connecticut-based Harman may exceed $3 billion as more consumers add in-dash navigation systems and equipment to link smartphones with vehicles, Paliwal said.
Net income in the quarter that ended March 31 more than quadrupled to $172.7 million, or $2.38 a share, from $36.6 million, or 51 cents, a year earlier, Harman said. Revenue rose 16 percent to $1.1 billion, helped by a 15 percent gain in sales of so-called infotainment systems, which connect vehicles to the Internet.
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