QUOTE AND NEWS
Forbes  Aug 7  Comment 
In early trading on Friday, shares of NVIDIA (NVDA) topped the list of the day's best performing components of the S&P 500 index, trading up 10.2%. Year to date, NVIDIA registers a 12.4% gain.
Benzinga  Aug 7  Comment 
Harris Corporation (NYSE: HRS) reported stronger-than-expected results for its fiscal fourth quarter. The Melbourne, Florida-based company reported a quarterly loss of $56.2 million, or $0.51 per share, versus a year-ago profit of $131.4...
newratings.com  Aug 7  Comment 
WASHINGTON (dpa-AFX) - Harris Corp. (HRS) reported that its net loss attributable to the company for the fourth quarter of fiscal 2015 was $56.2 million or $0.51 per share, compared to net income of $131.4 million, or $1.22 per share in the prior...
newratings.com  Aug 3  Comment 
WASHINGTON (dpa-AFX) - Harris Corp. (HRS) said that it has been awarded an IDIQ contract with a ceiling value of $228 million to support the U.S. Navy's maritime mine countermeasures or MCM efforts. The five-year contract includes...
newratings.com  Jul 20  Comment 
WASHINGTON (dpa-AFX) - Harris Corp. (HRS) Monday said it has received $45 million in delivery orders for advanced satellite communications terminals under the U.S. Army's Modernization of Enterprise Terminals or MET program. According to...
Market Intelligence Center  Jul 15  Comment 
After closing Tuesday at $80.79, Harris Corp (HRS) presents an attractive opportunity to get a 4.04% return in just 128 days, which is an annualized return of 11.53% (for comparison purposes only). To enter this trade, sell one Nov. '15 $80.00...
Forbes  Jul 14  Comment 
The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, Harris Corp. (HRS) is now the #122 analyst pick, moving up by 1 spot.
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....




 

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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