Zacks Industry Outlook Highlights: Motorola, Harris Corp, and Tellabs

Business Wire, August 15, 2005

CHICAGO -- Zacks.com releases its latest Industry Outlook. This report identifies the best stocks in the top-ranked industries. Featured in the latest report is the Telecom Equipment industry, with a focus on the following stocks: Motorola, Inc. (NYSE:MOT), Harris Corporation (NYSE:HRS) and Tellabs (NASDAQ:TLAB). To read the complete Industry Outlook report and to see all of the top-ranked industries, visit http://at.zacks.com/?id=2177.

Here are details on the stocks featured in the latest Industry Outlook.

Motorola, Inc. (NYSE:MOT) achieved a strong second quarter as all four of its businesses improved in terms of profitability. Excluding items, the company posted 26 cents per share, which bettered the consensus by 4%. The result also marked a year-over-year advance. Sales in the quarter reached $8.83 billion, marking a 17% advance from $7.54 billion in 2004. One of the major highlights for Motorola was a record 33.9 million handsets shipped, or 41% better than in 2004. This increased its global market share by 3.3% year-over-year to approximately 18.1%.

Harris Corporation (NYSE:HRS) finished its year with a solid fiscal fourth quarter report. Earnings per share totaled 44 cents, improving from 28 cents in the prior year and eclipsing Wall Street expectations by almost 5%. Furthermore, revenues advanced 14% to $822 million from $723 million. The big news was its guidance for fiscal 2006. The company now expects a range between $1.80 and $1.90 per diluted share, compared to its previous forecast of between $1.73 and $1.78. Revenue growth should exceed 10%.

Tellabs (NASDAQ:TLAB) designs, develops, deploys, and supports wireless and wireline network solutions. On a non-GAAP basis, Tellabs posted second quarter profits of 13 cents per share, marking a positive earnings surprise of almost 86%. Meanwhile, revenues surged 52% to $463 million from $304 million, marking its best revenue quarter since 2001. The company said its strong customer demand across multiple product lines led to this solid performance.

About Zacks Industry Outlook

These stocks featured above have a Zacks Rank of #1 ("Strong Buy") or #2 ("Buy") and a Zacks Equity Research rating of "Buy". The Zacks Rank is a quantitative indicator designed to cover periods of 1-3 months. Zacks Equity Research recommendations are based on both quantitative and qualitative factors and are intended to cover periods of 3-6 quarters.

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