Harris Corp. (HRS) recently announced that it has won a $960 million deal from the U.S. Air force Network-Centric Solutions-2 (NETCENTS-2) Application Services. Per the deal, Harris will supply indefinite amount of IT related products and services for three years. The contract can be extended for an additional year.
NETCENTS-2 supports the U.S. Air Force department by offering migration, integration, training, help desk, testing and program operations. Thus, selecting Harris will certainly aid the U.S. Air Force in upgrading its service by installing secure communications network and mission-critical applications, saving cost and time.
Recently, Harris reported fourth-quarter 2013 financial results where the bottom line met the Zacks Consensus Estimate and the top line surpassed the same. In the reported quarter, the segment generated orders worth $646 million, $498 million from the Tactical Radio Communications business and $148 million from the Public Safety and Professional Communications business. Total order backlog in the Tactical Radio Communications segment was $743 million and $598 million and in the Public Safety and Professional Communications segment was $743 million and $598 million, respectively.
Thus, we believe that such strong order backlog coupled with continuous order wins will certainly boost the company’s top line in the forthcoming quarters.
Harris currently carries a Zacks Rank #2 (Buy).
Harris Corporation, based in Melbourne, Fla., remains one of the leaders in the public safety and professional communication market and boasts products ranging from industry leading multi-band, multi-mode radios, public safety-grade broadband voice, video and data solutions.
Other Stocks to Consider
The stocks which are performing better in the defense sector and public safety are General Dynamics Corp. (GD), The Boeing Co. (BA) and Motorola Solutions Inc. (MSI). All three surpassed the Zacks Consensus Estimate in the most recent quarter.
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