Harman International (HAR) shares are down sharply on Street disappointment with the company’s long-term guidance.
For the fiscal third quarter ended March, the audio equipment company posted revenue of $848 million and dilued EPS of 31 cents, edging the Street consensus at $830.2 million and 29 cents.
The real issue is Harman’s issuance of “mid-term guidance” for the 2013 fiscal year – that’s right, 2013. The company sees top-line compounded growth of 7%-10%, with similar growth in operating profit; Harman sees FY 2013 profits of $3-$4 a share. Trouble is, that falls below the level of Street models. (Or at least, the ones that go out that far.)
Terming the guidance “disappointing,” Baird analyst Davie Leiker notes that the projection “represents little organic growth” beyond end-market recovery of the company’s automotive business.
HAR is down $10.68, or 20.8%, to $40.64.
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