Harris' Winning Spree Continues - Analyst Blog
September 23 2011 - 1:54PM
Zacks
A leading supplier of communications equipment and services,
Harris Corp. (HRS) recently won a contract worth
$9.6 million from the U.S. Department of Veterans Affairs (VA) to
improve the financial and administrative legacy systems within the
Veterans Health Administration
Harris will deliver and support the VA department for a period
of 5 years, thus creating an opportunity for the company in
healthcare business.
VA provides delivery of patients to more than 150 hospitals and
the partnership with Harris will facilitate improved service across
six core categories including X12, Fee Basis Purchased Care,
Credentialing and Privileging Enhancements (CAPE), ICD-10 Encounter
Forms, Occupational Health & Safety Management Information
System (OHSMIS) and Revenue Operations.
Recently, Harris CapRock Communications, which is a global
provider of mission-critical managed satellite communications
solutions for the energy, government, and maritime industries,
won a contract from Farstad Shipping to supply Very Small
Aperture Terminal (VSAT) for its 53 fleets.
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
Estimates.
Accretive share repurchase plan and recent dividend hikes will
act as positive catalysts for the stock going forward. Moreover,
continuous contract wins and huge order back logs are expected to
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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