Harris Wins Follow-on Contract - Analyst Blog
August 31 2011 - 12:33PM
Zacks
A leading supplier of communications equipment and services,
Harris Corp. (HRS) recently won a follow-on
contract worth $16 million from Lockheed Martin. The total value of
the contract from Lockheed Martin including the recent win is
approximately $200 million.
As per the deal, Harris will deliver nearly 100 Harris Highband
Networking Radio (HNR) systems to the U.S. Army's Warfighter
Information Network.
The Highband Networking Radio system supports beam technology,
which ensures smooth long distance communication facility and
avoids fixed network infrastructure or operator intervention as it
automatically selects the best communications path, and creates a
self-forming, self-healing network.
Harris remains the leader in the public safety and professional
communication market and boasts products ranging from IP voice and
data networks, industry leading multi-band, multi-mode radios,
public safety-grade broadband voice, video and data solutions that
support 500 systems globally. Recently, the company declared its
fourth quarter 2011 financial results, where both revenue and
earnings per share (EPS) surpassed the Zacks Consensus
Estimate.
Accretive share repurchase plan and the recent dividend hikes
will act as positive catalysts for the stock going forward.
Moreover, continuous contract wins and huge order back logs will
support future growth.
However, the company remains exposed to stiff competition from
companies like Boeing Co. (BA), General
Dynamics Corp. (GD) and Raytheon Co.
(RTN), which also provide high-end public safety communication
systems.
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
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