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Raytheon to Manufacture NSM Launchers at Louisville Plant
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Raytheon Company is set to manufacture launchers for the Kongsberg Naval Strike Missile or NSM at its Louisville facility. The company builds Close-in Weapon Systems including Phalanx, SeaRAM and Rolling Airframe Missile launchers at the plant. This contract closely follows Raytheon’s deal with Kongsberg to construct the NSM launchers in Tucson, AZ.
The contract also entails the final assembly, integration and test of the NSM at Raytheon's Tucson facility.
NSM is an anti-ship missile with a range of over 100 nautical miles. It has a greater capability to strike land and sea targets. Raytheon and Kongsberg believe that NSM is a perfect resolution for navies around the world as well as for the U.S. Navy's Littoral Combat Ship (“LCS”). Back in 2014, the U.S. Navy test fired a NSM from Independence-class LCS USS Coronado (LCS-4).
Lockheed Martin Corp.’s (LMT - Free Report) Long Range Anti-Ship Missile (“LRASM”) and an improved version of Boeing’s (BA - Free Report) Harpoon anti-ship missile are likely to pose competitive threat to the Over-the-horizon program.
Based in Massachusetts, Raytheon is one of the largest aerospace and defense companies in the U.S. with a diversified line of military products, including missiles, radars, sensors, surveillance and reconnaissance equipment, communication and information systems, naval systems, air traffic control systems, and technical services.
Q2 Performance at a Glance
Raytheon reported solid second-quarter results wherein it topped the Zacks Consensus Estimates on both the top and bottom line fronts. Further, the company’s earnings and revenues improved 3.2% and 6.1% respectively, on a year-over-year basis. Apart from reporting a stellar second quarter, the missile maker raised its 2016 guidance for margins, operating cash flow, EPS as well as bookings.
Earlier this month, Raytheon secured a U.S. Navy contract extension to provide conversion, system overhaul and upgrade services as well as related hardware for MK 15 Close-In Weapon Systems or CIWS. This modification contract, worth $288 million, will include purchases for the Navy and foreign allies comprising governments of Turkey as well as Australia, under the Foreign Military Sales (“FMS”) program. Raytheon is slated to complete work under this contract by Dec 2022.
Raytheon has a distinct focus on its overseas business. The company has been witnessing a steady rise in international sales over the past few years. International bookings comprised 31% of total company bookings in the second quarter of 2016. International sales increased 8% in the quarter while 42% of the total backlog was from international customers.
Raytheon carries a Zacks Rank #3 (Hold).
A Key Pick
A better-ranked stock in the defense space is Ducommun Inc. (DCO - Free Report) , sporting a Zacks Rank #1 (Strong Buy).
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Raytheon to Manufacture NSM Launchers at Louisville Plant
Raytheon Company is set to manufacture launchers for the Kongsberg Naval Strike Missile or NSM at its Louisville facility. The company builds Close-in Weapon Systems including Phalanx, SeaRAM and Rolling Airframe Missile launchers at the plant. This contract closely follows Raytheon’s deal with Kongsberg to construct the NSM launchers in Tucson, AZ.
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The contract also entails the final assembly, integration and test of the NSM at Raytheon's Tucson facility.
NSM is an anti-ship missile with a range of over 100 nautical miles. It has a greater capability to strike land and sea targets. Raytheon and Kongsberg believe that NSM is a perfect resolution for navies around the world as well as for the U.S. Navy's Littoral Combat Ship (“LCS”). Back in 2014, the U.S. Navy test fired a NSM from Independence-class LCS USS Coronado (LCS-4).
Lockheed Martin Corp.’s (LMT - Free Report) Long Range Anti-Ship Missile (“LRASM”) and an improved version of Boeing’s (BA - Free Report) Harpoon anti-ship missile are likely to pose competitive threat to the Over-the-horizon program.
Based in Massachusetts, Raytheon is one of the largest aerospace and defense companies in the U.S. with a diversified line of military products, including missiles, radars, sensors, surveillance and reconnaissance equipment, communication and information systems, naval systems, air traffic control systems, and technical services.
Q2 Performance at a Glance
Raytheon reported solid second-quarter results wherein it topped the Zacks Consensus Estimates on both the top and bottom line fronts. Further, the company’s earnings and revenues improved 3.2% and 6.1% respectively, on a year-over-year basis. Apart from reporting a stellar second quarter, the missile maker raised its 2016 guidance for margins, operating cash flow, EPS as well as bookings.
Earlier this month, Raytheon secured a U.S. Navy contract extension to provide conversion, system overhaul and upgrade services as well as related hardware for MK 15 Close-In Weapon Systems or CIWS. This modification contract, worth $288 million, will include purchases for the Navy and foreign allies comprising governments of Turkey as well as Australia, under the Foreign Military Sales (“FMS”) program. Raytheon is slated to complete work under this contract by Dec 2022.
Raytheon has a distinct focus on its overseas business. The company has been witnessing a steady rise in international sales over the past few years. International bookings comprised 31% of total company bookings in the second quarter of 2016. International sales increased 8% in the quarter while 42% of the total backlog was from international customers.
Raytheon carries a Zacks Rank #3 (Hold).
A Key Pick
A better-ranked stock in the defense space is Ducommun Inc. (DCO - Free Report) , sporting a Zacks Rank #1 (Strong 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 >>