Harris Corp. (HRS), one of the leaders in the public safety and professional communication market, recently sealed a $28 million deal with a Latin American country.
Per the deal, Harris will deliver its popular Falcon III RF-7800S Secure Personal Radios, RF-7800V Combat Net Radios and Falcon II RF-5800H High Frequency Radios Falcon tactical radios to the nation in order to tackle increasing cross-border crimes and drug trafficking.
Few days back, Harris won a substantial contract worth $100 million from the Australian Department of Defense. The defense department will deploy Falcon II AN/PRC-150(C) high-frequency manpack radios to aid mission critical tasks.
Recently, Harris also won a $49 million deal from a Middle East country to supply very high frequency multiband Falcon radios. These radios will be combined with vehicular intercom systems in order to support military and security forces. Moreover, the company has also received $36 million orders from a NATO-based nation for Falcon high-frequency tactical radios.
In the recently concluded fourth quarter of fiscal 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 the Tactical Radio Communications unit. Moreover, the 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 Nokia Corporation (NOK). Both Qualcomm and Nokia have a Zacks Rank #2 (Buy) while Ubiquiti Networks sports a Zacks Rank #1 (Strong Buy).
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