), one of the leaders in the public safety and professional
communication market, recently announced that it has won a
contract from the Federal Aviation Administration's (FAA) NextGen
Data Communications Program. The deal, valued at $150 million, is
for a seven-year period.
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FAA's Data communications Network Services (DCNS) is planning to
transform the country's air traffic control from analog voice
service to digital data communication service, hence improving
the quality of the air traffic control department.
Per the agreement, Harris will be supplying terrestrial circuits
and very high frequency data communication services to the DCNS
department, thereby forming a strong linkage between the air
traffic control team and the flight crew. Moreover, by
implementing the data communication service instead of the
traditional voice service, the pilots will able to get timely
information regarding departure clearances, weather route, and
other air traffic procedures. Such advanced services will save
fuel and offer timely departures, thus improving air traffic
In total, Harris received orders worth $481 million from the DCNS
department, out of which $331 million was won in Sep 2012.
Recently, Harris reported fourth-quarter 2013 financial results
where the bottom line met the Zacks Consensus Estimate and the
top line surpassed the same. During the quarter, the Government
Communications System Segment generated $481.4 million, down 3.2%
year over year. Thus, we believe that receiving such high-value
orders will certainly boost the company's top line.
Harris currently carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
The stocks which are performing better in the defense sector and
public safety are
General Dynamics Corp.
The Boeing Co.
Motorola Solutions Inc.
). All three surpassed the Zacks Consensus Estimate in the most