Harris Corporation (HRS - Free Report) recently secured a two-year contract from the U.S. Navy worth $9.4 million. Per the contract, the company will deliver digital map computers (DMCs) and digital video map computers (DVMCs) to provide the defense wings with improved navigation facilities.
The DMCs offer a graphical representation of the aircraft’s present position and the relative positions of targets, threats, terrain features, planned mission flight path, no fly zones, safe bases and other objects. In addition, the map presents contour lines, slope shading, dynamic elevation banding, threat inter-visibility, cultural features, variable scaling and overlays. The advanced mapping capabilities of the DMCs provide aircrews with a sophisticated depiction of the battlefield during combat operations.
The DVMCs are an upgrade to the existing DMCs and offer an additional, independent digital map channel with a resolution of 1024x1280 pixels over a 1-Gigabaud Fibre Channel digital video output, providing F/A-18E/F flight crews with a five-fold increase in map resolution for greater accuracy and enhanced safety.
Per the contract, Harris will deliver 35 DMCs for H-1 helicopters and 93 DMCs for the U.S. Navy Supply Corps. The company will also provide 24 DVMCs for F/A-18 Super Hornet aircraft variants, 30 DVMCs for the government of Kuwait, 24 extension housings for F/A-18 variants, and 26 extension housings for the government of Kuwait in support of the Air Combat Electronics program office.
The products will be manufactured in the Brevard County facility in Florida, generating local jobs and subcontractor opportunities, boosting the economy of the region. Florida is a major contributor to defense contracts and secures about $4 billion in government contracts each year as the nation’s Army, Air Force, Navy and Marines simulation operations are based in Central Florida Research Park.
Harris’ avionics systems have been an integral part of several fighter jets of the U.S. Defense, being extremely light-weight, smarter, more effective and affordable. The company is actively involved in research and development for next-generation mission computing and secure airborne communications technologies to ensure state-of-the-art products for the aviators.
With diligent execution of operational plans, the company’s shares have outperformed the industry over the past year with an average return of 40.3% compared with a rise of 7.2% for the latter.
Harris currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader industry are BlackBerry Limited (BB - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Motorola Solutions, Inc. (MSI - Free Report) and Ubiquiti Networks, Inc. (UBNT - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BlackBerry has a long-term earnings growth expectation of 18.6%.
Motorola has a long-term earnings growth expectation of 8%. It surpassed estimates in each of the trailing four quarters with an average positive earnings surprise of 12.1%.
Ubiquiti Networks has a long-term earnings growth expectation of 18.6%. It topped estimates thrice in the trailing four quarters with an average positive earnings surprise of 8.9%.
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