Back to top

Analyst Blog

Lockheed Martin Aeronautics Company, a key unit of Lockheed Martin Corporation (LMT - Analyst Report), received a modification contract of $54.6 million from the U.S. Department of Defense (DoD). Lockheed Martin, one of the prime U.S. defense contractors, has been receiving a good many DoD contracts on the back of its diversified product portfolio.

In this current contract, the company will provide non-recurring technical support of the F-35 Lot VII program for the U.S. Navy, U.S. Air Force and other international partner governments. Under this contract, the company will provide manufacturing support and technical knowledge related to F-35 production. Work under this contract is scheduled to complete by Jan 2015.

The F-35 fighter jet is Pentagon’s costliest program. Its unique capabilities and operational efficiency have roped in orders not only from the U.S. military forces but also from allied countries. Though sequestration has negatively impacted Lockheed Martin’s sales, the F-35 warplane despite its many critics continued to find support in 2013. Moreover, the $1.1 trillion Omnibus spending measure President Obama signed into law was a major boost for this defense contractor.

In Mar 2014, Lockheed Martin received a sizable $698 million contract from the DoD. Per the contract, the company will provide the long lead parts, materials and components required for the production of 53 LRIP and Lot IX F-35 JSF.

Despite persistent threats of defense budget cuts, Lockheed Martin seems confident of 2014. For the year, the company has provided an earnings guidance range of $10.25 to $10.55 per share. The current Zacks Consensus Estimate for 2014 at $10.60 is above the high end of the guidance.

Currently, Lockheed Martin holds a Zacks Rank #3 (Hold). Other well-ranked defense players include Huntington Ingalls Industries, Inc. (HII - Snapshot Report), General Dynamics Corp. (GD - Analyst Report) and Northrop Grumman Corp. (NOC - Analyst Report). While Huntington Ingalls holds a Zacks Rank #1 (Strong Buy), General Dynamics and Northrop Grumman carry a Zacks Rank #2 (Buy).

Read the Full Research Report on LMT
Read the Full Research Report on HII
Read the Full Research Report on NOC
Read the Full Research Report on GD


Zacks Investment Research

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
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%