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Harris Corp Wins Another US Navy Contract Worth $97 Million

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Leading supplier of communications equipment and services, Harris Corp. (HRS - Free Report) is on a deal winning spree. Following the $70 million contract win from the U.S. Navy, the company recently struck another $97 million worth deal with the U.S. Naval Air Systems Command (NAVAIR).

Harris will deliver advanced self protection jammers to the U.S. Navy for its integrated defensive electronic countermeasures (IDECM) program which will allow pilots and crew to avoid radio frequency threats.

Harris will also offer ALQ-214 radio frequency integrated counter measure system to facilitate the prevention of any superior threats arising from hostile radars and air defense systems. Notably, for last 18 years, Harris has been an integral part of IDECM helping the latter to upgrade its technology. As per the new development, Harris will also start manufacturing the twelfth full-rate production lot of the system, with a choice for the thirteenth lot to be implemented in 2016.

Earlier in the month, Harris was awarded a $228 million IDIQ contract by the Space and Naval Warfare (SPAWAR) Systems Center Pacific in San Diego, CA, to aid the U.S. Navy’s maritime mine countermeasures (MCM) endeavors. The five-year contract incorporated a three-year base and two one-year options.

Recently, Harris reported fourth-quarter 2015 financial results wherein both the top and the bottom line outpaced the Zacks Consensus Estimate mainly buoyed by the inclusion of Exelis. In the reported quarter, the segment generated orders worth $402 million from the Tactical Radio Communications business and $128 million from the Public Safety and Professional Communications business. Total order backlog at the Tactical Radio Communications segment and the Public Safety and Professional Communications segment was $488 million and $514 million, respectively.

Thus, we believe that such strong order backlog coupled with continuous contract wins will certainly boost the company’s top line in the forthcoming quarters.

Harris currently sports a Zacks Rank #1 (Strong Buy).

Other Stocks to Consider

Some other favorably-ranked stocks in this sector are Juniper Networks, Inc. (JNPR - Free Report) , TESSCO Technologies Inc. (TESS - Free Report) and Skyworks Solutions Inc. (SWKS - Free Report) . All the three stocks carry the same Zacks Rank as Harris.

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