Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Lockheed Martin Corporation (LMT - Analyst Report) received a string of Department of Defense (DoD) contracts totaling $64.4 million. The DoD handed out 15 individual contracts of which Lockheed clinched 20%.

The biggest contract received by Lockheed was valued at $30.3 million for the modification of Mission Avionics Systems and Common Cockpits for MH-60R Sikorsky Seahawk helicopters. This contract was an extension of the previous firm-fixed-price agreement between Danish military and Lockheed for the delivery of nine Mission Avionics Systems and Common Cockpits under the U.S. foreign military sales (FMS) program. The systems are expected to be supplied by Apr 2018.

The company secured another international contract from the Royal Saudi Air Force for the supply of 95 Sniper Advanced Targeting Pods, 70 Infrared Search and Track (IRST) systems, 35 Compact Multiband Data Link systems, 75 IRST pylons and spare parts. The contract is valued at $21.4 million and is anticipated to be concluded in Dec 31, 2019.

The final contract worth $12.7 million was awarded by the U.S. Air Force for retrofitting F-22 Raptor fighter jets. Per the deal, Lockheed will supply 72 retrofit kits, other support equipment as well as spares to modify the F-22’s automatic back up life support system.

This contract was awarded to Lockheed in response to the complaints filed by F-22 pilots regarding breathing problems. The modifications are expected to be completed by May 30, 2015.

Lockheed has received a number of contracts, big and small, in the past few months. The most significant is the $320 million contract for offering improved communications reliability, survivability, and information capabilities to the Air Force’s IT communications center in Washington D.C.

Recent domestic contract wins by Lockheed have been mostly low-priced given the threat of budget sequestration in the U.S. However, this will be countered by more FMS contract wins owing to rising security issues that will keep the company well positioned.

Lockheed’s diversified operations focusing on ISR, unmanned systems, force protection, cyber security, and missile defense will further fetch orders in the upcoming quarters.

Presently, Lockheed carries a Zacks Rank #3 (Hold). Other operators in the defense sector looking good are Zacks Ranked #2 (Buy) Boeing Company (BA - Analyst Report), Northrop Grumman Corp. (NOC - Analyst Report) and Raytheon Company (RTN - Analyst Report). Based in Bethesda, Md., Lockheed currently has a market capitalization of $33.63 billion.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%