Harris Corporation (HRS) – a leading supplier of communications equipment and services –won three major contracts, back to back, over the past one week.
Yesterday, the company won a $19 million contract from Air Force Special Operations Command (AFSOC) of U.S. to supply Falcon III wideband tactical radios. Following the development, the company's shares increased more than 1%.
Per the deal, Harris will deliver nearly 1,500 Falcon III AN/PRC-152A wideband radios and accessories. Harris has already supplied in excess of 45,000 Falcon III wideband tactical radios to the U.S Department of Defense and allied forces in more than 15 countries.
On Sep 12, 2014, Harris received an order for Falcon III RF-340M multi-channel manpack Radios from the U.S. Department of Defense.
A day prior to that, on Sep 11, 2014, Harris received a massive order worth $88 million from an unidentified country in the Middle East to supply Falcon III wideband tactical radios and accessories. The company will deliver the RF-7800H wideband HF tactical radio, the RF-7850M radio and the RF-7800S lightweight soldier personal radio.
We believe Harris RF Communications segment is rapidly gaining momentum in international markets and this trend is likely to continue as Harris’ next-generation Falcon III tactical radio is receiving increasing market traction. Such continuous and valuable contract wins should boost Harris’ top and bottom lines higher in the near term. Moreover, Harris’ consolidated revenues in the fourth quarter of fiscal 2014 reached $1,329.4 million, down 2.2% year over year. However, the figure comfortably surpassed the Zacks Consensus Estimate of $1,299 million.
Currently, Harris carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
Investors interested in the sector can consider better-ranked stocks like Aruba Networks, Inc. (ARUN), General Dynamics Corporation (GD) and Lockheed Martin Corporation (LMT). All these stocks hold a Zacks Rank #2 (Buy).
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