Back to top

Analyst Blog

Harris Corporation (HRS - Analyst Report), a leader in the public safety and professional communication market, received an order worth $81 million for its Falcon III wideband tactical radio. The order is a part of a $400 million deal with Harris Corporation, where the company will support the U.S. Special Operations Command (USSOCOM) to upgrade its equipment.

As a part of the deal, Harris will provide USSOCOM with its Falcon III AN/PRC-117G radios, which facilitates high bandwidth communications and supports video streaming, and faster voice and data transmission across a battlefield. According to the company, the radio is much lighter than traditional radios, thereby significantly reducing a soldier’s load and offering high degree of mobility and security.

Recently, Harris declared its third quarter 2012 financial results with both revenue and EPS surpassing the Zacks Consensus Estimate. In the reported quarter, the RF Communication segment, which includes Tactical Radio Communications and Public Safety and Professional Communications, won new orders worth $629 million with $534 million in the Tactical Radio Communications business. Total order book in the Tactical Radio Communication segment stood at $717 million.

Falcon III tactical radio is gaining popularity within the Defense sector of several countries and the company expects to win many more deals in that field. We believe that the USSOCOM deal proves Harris Corporation’s ability to support the current and future public safety requirements. Tactical Radios and Public Safety and Professional Communications together provide an opportunity of more than $6 billion.

In spite of winning consistent contracts along with a strong order book, Harris faces stiff competition from companies like Boeing Co. (BA - Analyst Report), General Dynamics Corp. (GD - Analyst Report) and Raytheon Co. (RTN - Analyst Report) which also provide high-end public safety communications system.

Recommendation: We are maintaining our long-term Neutral recommendation on Harris Corporation. Currently Harris Corporation has a Zacks #3 Rank, implying a short-term hold rating on the stock.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%