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Lockheed Wins US Navy Pilot Survivability Training Contract
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Lockheed Martin Corp. (LMT - Free Report) has received a five-year, single-award, indefinite delivery, indefinite quantity (IDIQ) contract to support the Aircrew Electronic Warfare Tactical Training Range or AEWTTR project in Ridgecrest, CA. The contract has a ceiling value of $424 million.
Awarded by the U.S. Naval Air Warfare Center – Weapons Division, the company will provide tactical training products and services for Navy pilot training through the development of threat radar emitter simulators and other target/threat peripheral equipment.
Lockheed Martin has served the U.S. Navy with radar simulator training technology for over 30 years through its Information Systems & Global Solutions (IS&GS) unit. The latest contract extends that bond with the company supplying radar simulators in support of pilot survivability training.
Moreover, Lockheed Martin will provide Tactical Training Range engineering support services to update, repair and/or replace legacy radar systems with the latest technology and provide new radar data interfaces and range integration.
Lockheed Martin is the largest U.S. defense contractor with a platform-centric focus that guarantees a steady inflow of follow-on orders from a leveraged presence in the Army, Air Force, Navy and IT programs.
This defense giant not only reported better-than-expected first-quarter 2016 earnings in spite of incurring severance expenses, but also boosted its full-year outlook for earnings, revenues, operating profit and cash flow.
Meanwhile, Lockheed Martin has agreed to separate and combine its IS&GS division with Leidos Holdings, Inc. (LDOS) using a Reverse Morris transaction valued at about $5 billion. Lockheed Martin’s shareholders will receive 50.5% of the equity value of Leidos (valued at $3.2 billion) and the company will receive a one-time cash payment of $1.8 billion.
The Leidos deal, which is expected to close in the second half of 2016, still needs approval from its shareholders. The company expects the portfolio to be faster growing with higher returns following the divestiture to Leidos. The new portfolio will to an extent have less exposure to short-cycle businesses that are more affected by budget volatility.
Zacks Rank
Lockheed Martin carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the aerospace and defense space include BAE Systems plc (BAESY - Free Report) , CAE Inc. (CAE - Free Report) and Esterline Technologies Corp. . While BAE Systems carries a Zacks Rank #1 (Strong Buy), CAE and Esterline Technologies hold a Zacks Rank #2 (Buy).
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Lockheed Wins US Navy Pilot Survivability Training Contract
Lockheed Martin Corp. (LMT - Free Report) has received a five-year, single-award, indefinite delivery, indefinite quantity (IDIQ) contract to support the Aircrew Electronic Warfare Tactical Training Range or AEWTTR project in Ridgecrest, CA. The contract has a ceiling value of $424 million.
Awarded by the U.S. Naval Air Warfare Center – Weapons Division, the company will provide tactical training products and services for Navy pilot training through the development of threat radar emitter simulators and other target/threat peripheral equipment.
Lockheed Martin has served the U.S. Navy with radar simulator training technology for over 30 years through its Information Systems & Global Solutions (IS&GS) unit. The latest contract extends that bond with the company supplying radar simulators in support of pilot survivability training.
Moreover, Lockheed Martin will provide Tactical Training Range engineering support services to update, repair and/or replace legacy radar systems with the latest technology and provide new radar data interfaces and range integration.
Lockheed Martin is the largest U.S. defense contractor with a platform-centric focus that guarantees a steady inflow of follow-on orders from a leveraged presence in the Army, Air Force, Navy and IT programs.
This defense giant not only reported better-than-expected first-quarter 2016 earnings in spite of incurring severance expenses, but also boosted its full-year outlook for earnings, revenues, operating profit and cash flow.
Meanwhile, Lockheed Martin has agreed to separate and combine its IS&GS division with Leidos Holdings, Inc. (LDOS) using a Reverse Morris transaction valued at about $5 billion. Lockheed Martin’s shareholders will receive 50.5% of the equity value of Leidos (valued at $3.2 billion) and the company will receive a one-time cash payment of $1.8 billion.
The Leidos deal, which is expected to close in the second half of 2016, still needs approval from its shareholders. The company expects the portfolio to be faster growing with higher returns following the divestiture to Leidos. The new portfolio will to an extent have less exposure to short-cycle businesses that are more affected by budget volatility.
Zacks Rank
Lockheed Martin carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the aerospace and defense space include BAE Systems plc (BAESY - Free Report) , CAE Inc. (CAE - Free Report) and Esterline Technologies Corp. . While BAE Systems carries a Zacks Rank #1 (Strong Buy), CAE and Esterline Technologies hold a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>