Harris Pens $100M Defense Contract
Harris Corp. (HRS), one of the leaders in the public safety and professional communication market, recently announced that it has won a $100 million follow-on contract from the Australian Department of Defense.
Per the deal, Harris will supply multiband handheld and high-frequency manpack tactical radios under the Joint Project 2072 modernization plan. The Australian army will be installing the popular Falcon III AN/PRC-152 handheld radios and adapters in vehicles.
Moreover, the Department of Defense will also deploy Falcon II AN/PRC-150(C) high-frequency manpack radios to aid mission critical tasks. The radios also facilitate better line-of-sight and beyond-line-of-sight communication.
Earlier, in fiscal 2012, Harris received a massive order worth $235 million from the Australian Department of Defense to upgrade the tactical radio programm of its military service.
In the recently concluded fourth quarter of 2013, Harris reported mixed financial results with the bottom line beating the Zacks Consensus Estimate but the top line missing the same.
In the reported quarter, the RF Communications segment generated orders worth $348 million of which 65% was from Tactical Radio Communications unit. Moreover, total order backlog in the Tactical Radio Communications division was $664 million.
Thus, we believe that such overseas contract wins will not only drive the company’s top-line growth but will also consolidate its position against larger industry players.
Harris currently carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
The stocks which are performing better in the same sector are Ubiquiti Networks, Inc. (UBNT), Qualcomm, Inc. (QCOM) and Polycom, Inc. (PLCM). Both, Qualcomm and Polycom have a Zacks Rank #2 (Buy) while Ubiquiti Networks sports a Zacks Rank #1 (Strong Buy).
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