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Harris Wins Contracts Across Domestic, International Markets

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Harris Corporation recently procured a $141 million contract from the Airports Authority of India (“AAI”) to modernize India’s air traffic management communications infrastructure and support one of the world’s fastest growing aviation markets.

The AAI owns and maintains 129 airports. The 15-year contract entails Harris to serve as the prime contractor and systems integrator for AAI’s Futuristic Telecommunications Infrastructure initiative.

Harris plans to leverage its extensive expertise from creating and managing the highly successful Federal Aviation Administration managed services network.

Such an initiative will upgrade network operations, enhance security, and improve performance, reliability and quality of India’s air traffic management (ATM) network. It will also reduce telecommunications costs.

Also, the new network is expected to meet the demands of India’s rapid aviation growth and lay the foundation for future ATM opportunities for Harris in other geographies, with high air traffic growth.

At the same time, in a separate development, Miami beach has selected Harris to modernize its critical communications network, in order to transform it from a legacy analog radio system to a new digital network, which provides increased reliability and functionality for more than 1,000 first responders. Harris’ solution will provide the tools that first responders need to stay safe and save lives.

The company plans to provide an end-to-end digital solution that will deliver a unified, interoperable communications for voice, data and applications across multiple agencies. Also, it will simplify complex dispatch center operations.

Such contract wins are likely to add to the top-line growth of the company. Over the past three months, Harris’ shares have outperformed the industry with an average return of 1.7% against a decline of 3.7% for the latter.        



Harris currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader industry are Comtech Telecommunications Corp. (CMTL - Free Report) , Micron Technology, Inc. (MU - Free Report) and SMC Corporation (SMCAY - Free Report) . While Comtech Telecommunications and Micron Technology sport a Zacks Rank #1 (Strong Buy), SMC carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Comtech Telecommunications has an expected long-term earnings growth rate of 5%. It has exceeded earnings estimates in each of the trailing four quarters, with an average of 111.4%.   

Micron Technology has an expected long-term earnings growth rate of 10%. It has exceeded earnings estimates in each of the trailing four quarters, with an average of 8%.  

SMC has an expected long-term earnings growth rate of 13.7%.  

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