Harris Falls After 2010 Outlook Misses Estimate

NEW YORK (AP) — Harris Corp. stock fell Wednesday after the military radio maker's outlook for next year missed Wall Street expectations and an analyst downgraded the shares.

On Tuesday after the market closed the Melbourne, Fla., company forecast 2010 adjusted earnings of $3.10 to $3.40 per share, with revenue of $4.9 billion to $5.1 billion. Wall Street had expected, on average, a profit of $3.92 per share on sales of $5.1 billion, according to a Thomson Reuters survey.

CL King analyst Lawrence M. Harris downgraded the shares to "Accumulate" from "Strong Buy" on concerns about the "ability of the Iraqi government to purchase tactical radios from (the company) as a result of lower oil prices and the impact of troop withdrawals from Iraq on U.S. government purchases."

Harris, who cut his price target to $34 from $36, also trimmed his 2009 earnings per share estimate to $3.93 from $4 and his 2010 earnings per share estimate to $3.25 from $4.25.

Raymond James analyst Chris Quilty was more upbeat, reiterating his "Outperform" rating on the stock and cutting the price target to $44 from $51.