Leading communications equipment and service provider Harris Corp. HRS recently signed an $11 million deal with a nation in Africa to deliver its industry leading Falcon III multiband, multimission radios under an ongoing modernization program.
Per the terms of the deal, Harris will offer RF-7800H-MP wideband tactical manpack radios, which will boost long-range and beyond-line-of-sight data capacities.
Last month, Harris won a $12 million worth of contract from the armed forces of Philippines. Under the terms of the deal, Harris will supply Falcon III tactical vehicular radios, intercom systems and handheld radio devices to the Light Armored Division of the Philippine Army.
Of late, Harris has been on a deal winning streak, having being selected as one of the three leading suppliers of HMS Manpack radios to the U.S. Army. The Army plans to purchase nearly 65,000 HMS Manpack radios. The recent IDIQ contract entails a five-year base and an additional five-year option, with a ceiling value of $12.7 billion. Harris expects to start production of the components in the fourth quarter of fiscal 2017.
Coming to quarterly results, Harris posted earnings which bettered estimates in the second quarter of fiscal 2016, marking the eleventh successive quarter of earnings beat. Earnings also improved 12.9% on a year-over-year basis while revenues of $1.84 billion fell short of the Zacks Consensus Estimate. Revenues, however, improved 52.1% from the year-ago figure, supported by synergies from the Exelis deal.
We believe that the series of contract wins at the company will certainly boost the top line in the forthcoming quarters.
Meanwhile, Harris has decided to vend its Aerostructures business to Albany International Corp. AIN for an enterprise value of $210 million. The decision will allow the company to enhance its operating efficiency.
Harris currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Better-ranked stocks in this sector are Motorola Solutions, Inc. MSI and Sonoco Products Co. SON. Motorola Solutions sports a Zacks Rank #1 (Strong Buy) while Sonoco Products carries a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment