HRS Harris Corp.

Harris Corp. (HRS) recently won a deal worth $11.7 million from the U.S. Department of Defense.

As per the contract, Harris, a leading supplier of communications equipment and services, will deliver Falcon III® multiband handheld radio systems for Mine Resistant Ambush Protected (MRAP) vehicles, presently used in Afghanistan.

Harris will install Falcon III AN/VRC-110 vehicular radio systems in every MRAP vehicle. The AN/VRC-110 acts as an amplifier adapter, which comprises two AN/PRC-152(C) radios that serve as handheld transceivers. Deployment of such radio systems will give users reliable and secure line-of-sight and beyond-line-of-sight communications.

Both the AN/PRC-152(C) radios and AN/VRC-110 systems will be purchased by the U.S. Department of Defense by means of a Consolidated Single-Channel Handheld Radio (CSCHR) contract through the Joint Program Executive Office for the Joint Tactical Radio System (JTRS).  

Harris Corp. reported excellent second quarter 2011 financial results with revenue increasing 18.1% year over year. Total orders generated during the quarter were $1.41 billion.

For the third quarter of 2011, Harris has already won various contracts totaling roughly $1 billion, thereby showing strong signs of growth. Moreover, the company will benefit from higher defense spending by the U.S. government coupled with new expansion drives in the Asian, European & African markets.

Harris operates in a highly competitive communication equipment industry and faces intense competition from Boeing Co. (BA), General Dynamics Corp. (GD) and Raytheon Co. (RTN). 

We thus maintain our long-term Neutral recommendation for Harris Corporation. Currently, Harris Corporation has a Zacks#3 Rank, implying a short-term Hold rating on the stock.

 
BOEING CO (BA): Free Stock Analysis Report
 
GENL DYNAMICS (GD): Free Stock Analysis Report
 
HARRIS CORP (HRS): Free Stock Analysis Report
 
RAYTHEON CO (RTN): Free Stock Analysis Report
 
Zacks Investment Research