QUOTE AND NEWS
SeekingAlpha  Aug 29  Comment 
By Glyndon Park: Harris Corp (NYSE:HRS) announced a 12% pay raise for shareholders Thursday increasing their payout again this year to 0.47 from 0.42 per share. HRS is a communications and technology company based in Florida that drives a key...
Market Intelligence Center  Aug 4  Comment 
After Friday’s trading in Harris Corp (HRS) the algorithms behind MarketIntelligenceCenter.com's Artifical Intelligence Center picked out a trade that offers a 2.14% or 7.09% (for comparison purposes only), while providing 7.01% downside...
SeekingAlpha  Jul 29  Comment 
Harris Corporation (NYSE:HRS) Q4 2014 Earnings Conference Call July 29, 2014 08:30 ET Executives Pamela Padgett - VP, IR Bill Brown - Chairman & CEO Mick Lopez - SVP & CFO Analysts Omer Ismail - Goldman Sachs Joe...
newratings.com  Jul 29  Comment 
WASHINGTON (dpa-AFX) - Harris Corp.'s (HRS) fourth-quarter net income attributable to the company jumped to $131.4 million or $1.22 per share from $55.5 million or $0.51 per share, last year. The company's GAAP income from continuing...
Forbes  Jul 11  Comment 
The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a...
Market Intelligence Center  Jun 24  Comment 
After Monday’s trading in Harris Corp (HRS) the option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center uncovered a trade that offers a 2.66% return, or 18.29% annualized (for comparison purposes...
Market Intelligence Center  Jun 13  Comment 
The patented option trade-picking algorithms behind MarketIntelligenceCenter.com's Artificial Intelligence Center have selected a covered call trade on Harris Corp (HRS) that includes 4.07% downside protection. Sell one contract of the Aug. '14...
Market Intelligence Center  Jun 2  Comment 
MarketIntelligenceCenter.com's patented trade-picking algorithms have identified an attractive covered-call trade on Harris Corp (HRS). Look at the Aug. '14 $75.00 covered call for a net debit in the $73.35 area. This trade has a duration of 75...
Market Intelligence Center  May 13  Comment 
A covered call identified by MarketIntelligececenter.com's patented algorithm on Harris Corp (HRS) could yield about 3.23% (12.43% annualized, for comparison purposes only) in 95 days. Pair a long position in the stock with the Aug. '14 $75.00...
MedPage Today  May 7  Comment 
SAN FRANCISCO (MedPage Today) -- A trial addressing the question of whether implantable cardioverter-defibrillators (ICDs) need to be tested at the time of implantation will lead off the late-breaking clinical trials at the Heart Rhythm Society...




 

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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