QUOTE AND NEWS
newratings.com  Jul 1  Comment 
WASHINGTON (dpa-AFX) - Harris Corp. (HRS) announced that it will reorganize its business segments to increase operational efficiency and capture synergies that result from Harris' recent acquisition of Exelis. Effective the beginning of...
Market Intelligence Center  Jun 23  Comment 
After closing Monday at $80.18, Harris Corp (HRS) presents an attractive opportunity to get a 3.19% return in just 59 days, which is an annualized return of 19.71% (for comparison purposes only). To enter this trade, sell one Aug. '15 $80.00 call...
Market Intelligence Center  Jun 8  Comment 
The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center have selected a covered-call trade on Harris Corp (HRS) that includes 7.26% downside protection. Sell one contract of the Nov....
Forbes  May 29  Comment 
The most recent short interest data has been released by the NASDAQ for the 05/15/2015 settlement date, which shows a 603,888 share increase in total short interest for Harris Corp. (NYSE: HRS), to 6,581,731, an increase of 10.10% since...
newratings.com  May 22  Comment 
WASHINGTON (dpa-AFX) - Exelis Inc. (XLS) said Friday that its shareholders have approved the merger agreement providing for the acquisition of the company by Harris Corp. (HRS). Exelis also said that on Thursday, Exelis and Harris received...
Market Intelligence Center  May 21  Comment 
The patented algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center found a trading opportunity with Harris Corp (HRS) that should provide a 3.29% return in just 183 days. Sell one Nov. '15 call at the $75.00 level for...
MedPage Today  May 18  Comment 
(MedPage Today) -- Presenters discuss a self-contained miniaturized leadless pacemaker, a visually-guided laser balloon, and more.
newratings.com  May 5  Comment 
WASHINGTON (dpa-AFX) - Harris Corp. (HRS) reported that its net income attributable to the company for the third quarter of fiscal 2015 declined to $125.7 million from the prior year's $141.4 million, with earnings per share decreasing to...
Benzinga  Apr 20  Comment 
Harris Corporation (NYSE: HRS) has received $74 million in orders from an international customer to deliver Falcon® tactical radios as the next phase of the country's tactical communications modernization program. Harris will provide the full...




 

Harris Corporation (NYSE: HRS) provides communications and information technology systems and services to government and commercial companies in 150 countries.[1] Harris operates through three segments: RF Communications segment, Government Communications Systems segment and Broadcast Communications segment. Because approximately three fourths of 2010 revenue came from the Federal Government, Harris' revenue growth depends heavily on government and defense spending budgets.[2] In response to potentially declining defense spending, Harris has moved into other spaces through acquisitions.[3]


Business Growth

Harris reported net income of $562 million on revenues of $5.2 billion in 2010, versus net income of $38 million of revenues of $5.0 billion in 2009.[4] The Company reported higher revenues and improved margins due to sales of products from the the RF communications segment, which is the largest operating segment and boasts profit margins of around 30%.[5] While not reflected in 2010 results, entries through acquisitions into the energy and health care markets have the potential of diversifying its customer based and leading to higher sales.[6]


Trends and Forces

U.S. Government dependency puts pressure on sales as proposed budget cuts gain momentum

Over three quarters of 2010 revenues came from sales to the U.S. Government. As the U.S. debt increases, there are increasing budgetary pressures to cut spending in the future.[7] In addition, the Obama administration has proposed wind downs of the wars in Afghanistan and Iraq, which have the potential of leading to further defense spending cuts. In fact, the pentagon has said that all spending is on the table for possible cuts. However, a key Harris strategy has been to provide products and services that help modernize defense and government systems.[8] Harris has reported that receiving higher revenue from a number of strategic DoD communications programs as well as high global demand for sophisticated tactical radio solutions.[9] Also, Harris has diversified its product and services offering through acquisitions in the energy and health care space. However, a long-term reduction in government and defense spending in the U.S. has the potential of hindering future revenue growth.[10]

A large international consumer base creates currency and political risks

Harris operates is over 150 countries and derives a significant portion of revenues from products exported from the U.S. or manufactured and sold abroad.[11] Because the economic, social and political conditions for business conducted outside the U.S. differs from those encountered by domestic businesses, Harris's international operations are particularly exposed to losses due to economic or political declines in these countries. In addition, heightened political instability in the Middle East and parts of Africa have the potential of preventing contract renewals and leading to currency instability.[12] Despite the fact that no international customer composed more than three percent of 2010 revenues, Harris faces increased currency and political risk from the regional instability occurring in the Middle East.[13]

Competitors

Harris competes with several international communications and IT companies, especially those that focus on government contracts. However, budgetary pressures in the U.S. and a potential drop in defense spending have led many of Harris' competitors to expand into other growing industries and foreign markets.


Within Government Communications Systems, Harris competes with the following[14]:

Within RF Communications, Harris competes with the following[15]:

Within Broadcast Communications, Harris competes with the following[16]:

References

  1. Retuers.com: Harris Corporation Company Profile
  2. Retuers.com: Harris Corporation Company Profile
  3. Retuers.com: Harris Corporation Company Profile
  4. Morningstar.com: Financials for Harris Corporation
  5. Seeking Alpha: Harris Corp Gives Investors Growth at a Good Price
  6. Seeking Alpha: Harris Corp Gives Investors Growth at a Good Price
  7. Seeking Alpha: Harris Corp Gives Investors Growth at a Good Price
  8. Seeking Alpha: Harris Corp Gives Investors Growth at a Good Price
  9. Seeking Alpha: Harris Corp Gives Investors Growth at a Good Price
  10. Seeking Alpha: Harris Corp Gives Investors Growth at a Good Price
  11. Harris 2010 Annual Report
  12. Harris 2010 Annual Report
  13. Harris 2010 Annual Report
  14. Yahoo Finance: Competitors for Harris
  15. Yahoo Finance: Competitors for Harris
  16. Yahoo Finance: Competitors for Harris
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