Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Harris Corporation (HRS - Analyst Report), a leader in the public safety and professional communications market, has received a $63 million contract that entails the company to provide enterprise messaging services to the Federal Aviation Administration (FAA).

The National Air Space Enterprise Messaging Service (NEMS) of Harris Corp will act as network-centric distribution technology for a variety of data. It includes flight planning, efficient traffic management, surface radar and weather updates. Further, the NEMS service will also allow enterprise data sharing that will facilitate next generation air transportation system. 

For some time now, Harris has been developing and integrating system solutions for the FAA in support of the National Airspace System (NAS). This is the third contract for the company in quick succession as the Melbourne, Florida-based Harris received two multi-million contracts from FAA in the last one month. 

We believe the contract will strengthen its Government Communication Systems order book as the company continues to benefit from FAA’s initiative to modernize the U.S. air traffic control system with a next generation communication network. The company is expected to win many such contracts as it has been selected as a prime contractor for FAA Telecom infrastructure (FTI) initiative of National Airspace System (NAS).

However, despite winning consistent contracts and 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 communication systems.

Recently, Harris declared better-than-expected fiscal fourth-quarter 2012 financial results with Earnings per Share meeting the Zacks Consensus Estimate. In the reported quarter, Government Communication System segment revenue dipped 0.5% year over year to $497.2 million.

We are maintaining our long-term Neutral recommendation on Harris Corporation. The company also retains a Zacks #3 Rank, implying a short-term Hold rating.

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

Learn more

Start for as little as $4.50 per trade.

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
BITAUTO HOLD BITA 33.36 +8.40%
DIXIE GROUP DXYN 14.74 +4.83%
VALEO SA SPO VLEEY 68.09 +4.22%
NOAH HOLDING NOAH 13.77 +3.61%
INTERNATIONA ICAGY 32.55 +3.01%