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Harris Wins $400M Electronic Warfare IDIQ Contract Extension

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Harris CorporationHRS recently announced that it has secured a $400 million increase in the ceiling value of a single-award IDIQ (Indefinite Deliverable Indefinite Quantity) contract during fourth-quarter fiscal 2018, taking the tally to $491 million. The deal entails supply of electronic warfare (EW) systems for international F-16 fighters to help protect the aircraft fleet against current and evolving electronic threats. The company has delivered EW solutions for a variety of airborne platforms for more than 60 years by enabling missions for strategic bombers, tactical fighters and rotary aircrafts. This allows the company to employ added F-16 electronic warfare system upgrades worldwide.

Per the deal, Harris will provide AN/ALQ-211(V)4/9 Advanced Integrated Defensive Electronic Warfare Suite (AIDEWS) systems, spares and engineering support to allied countries as part of a Foreign Military Sales contract through the U.S. Air Force. The ALQ-211 detects lethal threats and provides multi-spectral situational awareness. It establishes a threat range from the mission aircraft when the aircrew encounters a probable danger, and if an aircraft is in lethal range of the threat, it initiates an instantaneous response.

The ALQ-211 coordinates the response for laser and infrared threats, providing an integrated approach to aircraft self-protection. It is deployed into the CV-22 Osprey Special Operations aircraft, Norwegian NH 90 multi-mission helicopter and is currently on board in international F-16 fighters for Chile, Poland, Pakistan, Turkey and Oman. The Harris AIDEWS system provides allies with sophisticated, high-performance electronic protection and offers the flexibility needed to meet unique mission needs.

Top-Line Performance

Moving on, such contract wins are likely to enhance the company's revenues, which has witnessed a compound annual growth rate of 16.7% from fiscal 2015 to fiscal 2018.

Share Price Performance

Over the past three months, shares of Harris have gained 5.7% compared with 8.7% growth for the industry .

Zacks Rank & Stocks to Consider

Harris currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Comtech Telecommunications Corp. CMTL , Motorola Solutions, Inc. MSI and QUALCOMM Incorporated QCOM . While Comtech sports a Zacks Rank #1 (Strong Buy), Motorola and QUALCOMM carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Comtech has a long-term earnings growth expectation of 5%. It beat earnings estimates in each of the trailing four quarters, the average being 123.7%.

Motorola has a long-term earnings growth expectation of 8.5%. It beat earnings estimates in each of the trailing four quarters, the average being 11.8%.

QUALCOMM has a long-term earnings growth expectation of 10.9%. It beat earnings estimates in each of the trailing four quarters, the average being 19.8%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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