Wed, Nov. 2, 9:18 AM
- Bryant VanCronkhite, lead manager of the $5 billion Wells Fargo Special Mid Cap Value fund (MUTF:WFPCX), aims to get an edge by buying companies with strong balance sheets, but only when Wall Street is mispricing their stock.
- Among the 60-odd holdings in his fund, he highlights private-label food maker TreeHouse Foods (NYSE:THS), communications outfit Harris (NYSE:HRS), fast-food chain Wendy’s (NYSE:WEN), transaction processor DST Systems (NYSE:DST), and set-top box maker Arris International (NASDAQ:ARRS).
- THS: He expects TreeHouse to throw off $500M-plus in free cash flow over the next five years from $213M last year. Says it's, “Wildly attractive in the consumer-staples space.”
- HRS: Became interesting when CEO Bill Brown took the helm in 2011. He bought rival Exelis for $4.6B and cleaned house. VanCronkhite expects the company’s more-concentrated portfolio of assets to produce higher levels of cash flow over the next three to five years. Notes that Jana Partners acquired two board seats in August, increasing the likelihood of even more value creation. At $89, its shares yield 2.4%.
- WEN: “Everyone knows Wendy’s products, but I don’t think the market prices in the way the business is run.” Management is on a “multiyear, multipronged” program to raise shareholder value, and has almost completed its move to a 95% franchise-owned model.
- DST: “DST rejuvenated their business model under a wealth and health platform.” Over the long term, he expects DST’s investments in technology to pay off. Expects FCF to more than double over the next five years.
- ARRS: The TV set-top-box maker’s customers are some of the biggest names in cable, such as Comcast and Charter Communications. And they’re incentivized to be good customers. “They have access to buy Arris stock at a specific price based on how much revenue they bring in. Says FCC fears are overblown.
- Source: Barron's
Tue, Nov. 1, 9:45 AM
- Harris Corp. (NYSE:HRS) has opened up 3.1% after its fiscal Q1 earnings report beat expectations, and the company unloaded one of its units for $425M.
- Harris is selling its CapRock Communications commercial business to SpeedCast for $425M in cash, which it will use for debt repayment and to return to shareholders. The deal for CapRock, which provides the cruise and energy markets with satellite, terrestrial and wireless communications, should close in calendar Q1.
- EPS rose 8% on a GAAP basis and 6% on a non-GAAP basis. Revenues were a "headwind," dropping nearly 3%, but cleared expectations. The company reiterated full-year guidance.
- Bookings came in strong at $2.05B; Book-to-bill ratio of 1.17,
- Revenue by segment: Communication Systems, $431M (down 5%); Space and Intelligence Systems, $453M (up 4.1%); Electronic Systems, $361M (down 3.5%); Critical Networks, $527M (down 6.9%).
- Press Release
Tue, Nov. 1, 6:32 AM
Mon, Oct. 31, 5:30 PM
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Mon, Oct. 31, 9:09 AM| Mon, Oct. 31, 9:09 AM
Fri, Oct. 28, 12:44 PM
Wed, Oct. 5, 1:25 PM
- Harris Corp. (HRS +0.4%) has gotten an initial order from the U.S. Army of about $10M worth of the company's Falcon III radios.
- The order is for Harris' two-channel Mid-tier Networking Vehicular Radio solution, the Falcon III AN/VRC-118, and it follows the Army getting Milestone C and LRIP authorizations for a limited-rate production run.
- The radios enable soldiers to share voice, data and video, and also act as network nodes to help transmit information to its destination. They'll be used in the 1st and 3rd Brigades of the 82nd Airborne Division.
Tue, Oct. 4, 5:41 PM
- Harris Corp. (NYSE:HRS) has made its first divestiture move after making its deal with Jana Partners, putting parts of its Critical Networks unit on the sales block, Reuters reports.
- The information technology services operation in that unit is among those up for sale, which could collectively bring more than $1B.
- A separate process could result in the sale of Harris CapRock Communications, the business that supplies services to the energy industry, for what could be more than $500M.
- In August, Harris appointed two directors to its board as part of a cooperation agreement it made with Jana in July, and promised to identify non-core assets for potential sale.
Wed, Aug. 31, 6:20 PM
- Harris Corp. (HRS +0.3%) has appointed James Albaugh to its board, and nominated Roger Fradin for election to a seat, part of a cooperation agreement between the company and Jana Partners.
- The two firms had agreed to work in good faith to find two directors independent of Jana to serve.
- Albaugh is senior adviser to Perella Weinberg Partners, following a 37-year career at Boeing. He also serves on the boards of American Airlines Group and B/E Aerospace.
- Fradin is vice chairman at Honeywell, and is also on the boards of Pitney Bowes and MSC Industrial Direct.
- Fradin's nomination will come for a vote at the company's annual meeting on Oct. 28.
Mon, Aug. 29, 9:32 AM
Tue, Aug. 2, 3:57 PM
- Gains in Harris (NYSE:HRS) have risen to 2.8% this afternoon after the company beat profit expectations with its fiscal Q4 earnings.
- Revenue grew a solid 24% but missed slightly. Non-GAAP income from continuing operations rose to $183M from the prior-year $148M.
- Revenue by segment: Communications Systems, $436M (down 21.3%); Space and Intelligence, $529M (up 73.4%); Electronic Systems, $381M (up 72.4%); Critical Networks, $575M (up 22.1%).
- Net cash from operations was $924M; free cash flow came to $772M.
- It opened 2017 guidance for EPS at $5.70-$5.90 (vs. consensus for $5.85), and revenues of $7.11B-$7.33B (light of an expected $7.49B).
- "Our results reflect our continued success in integrating Exelis and achieving our targets for synergy savings and earnings accretion,” said CEO William Brown.
- Press Release
Tue, Aug. 2, 6:32 AM
Mon, Aug. 1, 5:30 PM
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Mon, Jul. 25, 8:33 AM
- Norsat (NYSEMKT:NSAT) has received an approximate $3.8M order from Harris (NYSE:HRS) for its compact and efficient ATOM series Solid State Power Amplifiers.
- Harris chose the Norsat ATOM series SSPAs due to its compact size, remote control capability and low lifecycle costs which were key differentiators.
Mon, Jul. 11, 4:19 AM
- The Farnborough Airshow takes off today with executives from the aviation industry flying in to complete deals and unveil their latest technology.
- Brexit uncertainty could cloud demand for big jets, as Airbus (OTCPK:EADSY) and Boeing (NYSE:BA) look to snap up some scarce orders from the big carriers.
- Among the exhibitors: AJRD, AME, CAE, ERJ, FLIR, GD, HRS, LLL, LMT, RTN, SNA, SPR, TXT, UTX
Mon, Jun. 27, 10:08 AM