Harris Wins DHS EAGLE II Deal

Zacks

Harris Corporation (HRS), a leading supplier of communications equipment and services, has won an indefinite delivery, indefinite quantity (IDIQ) contract to supply Leading Edge Solutions II (EAGLE II) to Department of Homeland Security’s (DHS) Enterprise Acquisition Gateway.

This contract will be valid for a span of five years and can thereafter be extended for two additional years. However, financial details of the deal were not revealed by the company.

This DHS next generation platform, EAGLE II, is used for roping in IT service solutions under various functional sections. Harris’ role involves developing, implementing and maintaining services and solutions in Functional Category 1 – Unrestricted Track, Service Delivery.

Last month, Harris had secured two indefinite delivery, indefinite quantity (IDIQ) deals from the U.S. army for the supply of Soldier Radio Waveform (SRW) vehicular appliqué systems. The $988 million SRW Appliqué Radio Systems contract was distributed among four companies, namely, Exelis Inc., General Dynamics Corporation (GD), Thales Defense & Security and Harris. In the same month, the company also received a couple of contracts worth $131 million from some countries the identities of which were not disclosed.

We believe such continuous and valuable contract wins will drive Harris’ top and bottom lines higher. In the recently concluded quarter, the company surpassed the Zacks Consensus Estimate for earnings and also raised its fiscal 2014 earnings outlook. The company reported earnings per share of $1.27, beating the Zacks consensus estimate of $1.19. Consolidated revenues in the reported quarter stood at $1,267.5 million, up 5.3% year over year, surpassing the Zacks Consensus Estimate of $1,231 million. The company’s revenues from the government communications system increased 9.7% year over year to $476.6 million, whereas RF Communications system generated $457.2 million in revenues, up 9.5% year over year.

Currently, Harris carries a Zacks Rank #3 (Hold).

Other Stocks to Consider

Investors interested in the wireless equipment industry can consider ShoreTel, Inc. (SHOR) that sports a Zacks Rank #1 (Strong Buy) and Juniper Networks Inc. (JNPR) that holds a Zacks Rank #2 (Buy).

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