Back to top

Analyst Blog

Lockheed Martin Corporation (LMT - Analyst Report) has acquired U.K. based business, Amor Group, for an undisclosed sum. This strategic move will propel Lockheed Martin into Britain's top 10 companies for IT services.

Headquartered in Glasgow, Scotland, Amor Group – which provides IT systems for the energy, public service and transport sectors – has over 500 employees across seven facilities in the U.K. This strength would extend Lockheed Martin’s expertise to important contiguous business areas like energy, government health care and airport operations.

The defense major has acquired all of Amor’s shareholders, comprising Growth Capital Partners and the management. Now, this buyout will make Amor a part of Lockheed Martin’s information systems and global solutions unit.

Amor has its existence in another 15 countries. Its distinctive transportation systems run more than 3 million aircraft movements and track 700 million passengers each year. This would complement Lockheed Martin's operations with the U.S. Federal Aviation Administration and many other international customers.

Lockheed Martin and other defense biggies are gradually looking to diversify their presence in order to generate more sales in the face of domestic budget austerities and sequestration. Acquisitions like this will enrich Lockheed’s operations while keeping the top-line growth momentum intact. The U.S. Department of Defense has already planned to slash its spending level by $500 billion over the next 10 years. This is on top of $487 billion in cuts that were already planned for roughly the same period.

Lockheed Martin is the largest defense contractor in the world. The company’s customer base includes the U.S. government, foreign governments and other commercial buyers.

The company delivered better-than-expected second quarter earnings, which surged almost 11% from the year-ago profit level. The upcast in earnings was mainly attributable to strong operational performance. This drove the management to raise its full-year EPS guidance to $9.20–9.50 from $8.80–9.10.

Lockheed Martin presently retains a short-term Zacks Rank #2 (Buy). Other better-placed operators include Northrop Grumman Corp. (NOC - Analyst Report), Alliant Techsystems Inc. (ATK - Analyst Report) and B/E Aerospace Inc. (BEAV - Snapshot Report). While Alliant Techsystems carries a Zacks Rank #1 (Strong Buy), Northrop and B/E Aerospace hold a Zacks Rank #2 (Buy).

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

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
TRIQUINT SE… TQNT 20.64 +6.39%
RF MICRO DE… RFMD 12.45 +5.82%
VASCO DATA… VDSI 14.80 +4.89%
CHYRONHEGO… CHYR 2.85 +4.78%
THE ANDERSO… ANDE 68.65 +2.20%