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Harris Delivers Navigation Payload for GPS III Satellite

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Harris Corporation recently announced that it has delivered the seventh of 10 leading-edge navigation payload to Lockheed Martin Corporation (LMT - Free Report) , contracted for the U.S. Air Force’s GPS III satellite program. Healthy delivery momentum alongside contract wins, mainly from U.S. federal customers is expected to help Harris enhance its organic revenues and margins.

The technology and communications company’s skill in generating and sending GPS signals goes back to the middle of 1970. While the Air Force initially developed GPS for warfighters, millions of people worldwide and billions of dollars in trade presently depend on reliable signal sent by Harris’ navigation technology.

Markedly, the GPS III navigation payload features a Mission Data Unit (MDU) with 70% digital design that links atomic clocks, radiation-hardened processors and powerful transmitters. This enables signals up to three times more accurate than any other GPS satellites currently in operation. Reportedly, the payload improves signal power, which helps to increase jamming resistance by eight times and extend the satellite’s lifespan.

In 2017, Harris completed the development of a more-capable MDU for the Air Force’s GPS III Follow On (GPS IIIF) program. The GPS IIIF payload design has enhanced the satellite’s performance. In September 2018, the U.S. Air Force had chosen Lockheed Martin for a fixed-price-type production contract for up to 22 GPS IIIF satellites. Harris is Lockheed Martin’s navigation signal partner for GPS IIIF satellites. In January 2019, Harris secured a $243 million contract to provide the navigation signals for the first two GPS IIIF satellites.

Harris has long-term EPS growth expectation of 8%. It beat earnings estimates in each of the trailing four quarters, the average positive surprise being 3%. Further, the transformational merger with L3 Technologies will likely boost its competitive position, offering it economies of scale while driving growth and creating additional value for shareholders.

Driven by diligent execution of operational strategies, the stock has rallied 39.7% compared with the industry’s rise of 17.7% in the year-to-date period.



Harris currently carries a Zacks Rank #2 (Buy). A couple of other top-ranked stocks in the industry include Motorola Solutions, Inc. (MSI - Free Report) and Ubiquiti Networks, Inc. , both carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Motorola has long-term earnings growth expectation of 7.7%.

Ubiquiti has long-term earnings growth expectation of 19.8%.

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