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Lockheed (LMT) Unit Wins $133M Air Force Deal for C-130J
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Lockheed Martin Corp.’s (LMT - Free Report) unit, Aeronautics, has won a modification contract from the U.S. Air Force to provide two U.S. government-configured C-130J-30 aircraft.
Another FMS Contract
The contract is valued at $133.4 million. It was awarded by the Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, OH.
The modification includes unclassified foreign military sales (“FMS”) to France. Work is scheduled to be complete by Aug 30, 2020. The company will execute the work in Marietta, GA. The contract will use FMS France funds.
Recently, Lockheed Martin raised the international mix to total revenues from 21% in 2016 to 30% for the next few years. Lately, the company has been witnessing strong demand for its equipment, ranging from C-130J aircraft to helicopters and for its missile defense systems in the Asia-Pacific, Europe, and Middle East regions.
C-130J Super Hercules is the latest model in Lockheed Martin’s Hercules family. It is a four-engine, turboprop, military transport aircraft. The Hercules family boasts the longest continuous production run of a military aircraft in history. The C-130J's crew includes just two pilots and one loadmaster as no navigator or flight engineer is required on the aircraft.
The J-model is almost similar to the classic Hercules in terms of general appearance. However, it uses updated technology like the new Rolls-Royce AE 2100 D3 turboprops with Dowty R391 composite scimitar propellers, digital avionics and reduced crew requirements. These improvements boosted its performance over the C-130E/H predecessors, including 40% greater range, 21% higher maximum speed and 41% shorter take-off distance.
About Lockheed Martin
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. The company witnesses persistently robust demand for its programs in the international markets.
We believe that Lockheed Martin has significant upside potential going forward, based on the U.S. government’s increased focus on Intelligence Surveillance Reconnaissance (ISR), unmanned systems, force protection, cyber security, and missile defense.
Meanwhile, the fiscal 2017 budget proposal reflects an annual increase of approximately $2.2 billion over the fiscal 2016 budget. The increased spending would be allocated to certain key areas that can unlock significantly higher opportunities for Lockheed Martin.
Price Movement
Lockheed’s stock has improved about 23.64% in the last one year, outperforming the Zacks Categorized Aerospace/Defense industry’s gain of 11.86% over the same time frame. This could be because Lockheed continues to witness a steady flow of contracts from the Pentagon and other international customers.
Zacks Rank & Other Key Picks
Lockheed Martin currently has a Zacks Rank #2 (Buy). A few other favorably placed stocks in the aerospace and defense space include Engility Holdings, Inc. , Northrop Grumman Corporation (NOC - Free Report) and Leidos Holdings, Inc. (LDOS - Free Report) .
On an average, Engility delivered a positive earnings surprise of 23.19% in the trailing four quarters. The company’s 2016 earnings estimates increased 13.4% over the last 30 days. Engility sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Northrop Grumman, another Zacks Rank #1 stock, delivered a positive earnings surprise of 8.29% in the trailing four quarters. The company’s 2016 earnings estimates inched up 0.1% in the last 30 days.
Leidos Holdings carries a Zacks Rank #2 (Buy). The company’s 2016 earnings estimates increased 10.6% over the last 30 days. On an average, the company has delivered a positive earnings surprise of 12.20% in the trailing four quarters.
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Lockheed (LMT) Unit Wins $133M Air Force Deal for C-130J
Lockheed Martin Corp.’s (LMT - Free Report) unit, Aeronautics, has won a modification contract from the U.S. Air Force to provide two U.S. government-configured C-130J-30 aircraft.
Another FMS Contract
The contract is valued at $133.4 million. It was awarded by the Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, OH.
The modification includes unclassified foreign military sales (“FMS”) to France. Work is scheduled to be complete by Aug 30, 2020. The company will execute the work in Marietta, GA. The contract will use FMS France funds.
Recently, Lockheed Martin raised the international mix to total revenues from 21% in 2016 to 30% for the next few years. Lately, the company has been witnessing strong demand for its equipment, ranging from C-130J aircraft to helicopters and for its missile defense systems in the Asia-Pacific, Europe, and Middle East regions.
LOCKHEED MARTIN Price
LOCKHEED MARTIN Price | LOCKHEED MARTIN Quote
A Brief Note on C-130J
C-130J Super Hercules is the latest model in Lockheed Martin’s Hercules family. It is a four-engine, turboprop, military transport aircraft. The Hercules family boasts the longest continuous production run of a military aircraft in history. The C-130J's crew includes just two pilots and one loadmaster as no navigator or flight engineer is required on the aircraft.
The J-model is almost similar to the classic Hercules in terms of general appearance. However, it uses updated technology like the new Rolls-Royce AE 2100 D3 turboprops with Dowty R391 composite scimitar propellers, digital avionics and reduced crew requirements. These improvements boosted its performance over the C-130E/H predecessors, including 40% greater range, 21% higher maximum speed and 41% shorter take-off distance.
About Lockheed Martin
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. The company witnesses persistently robust demand for its programs in the international markets.
We believe that Lockheed Martin has significant upside potential going forward, based on the U.S. government’s increased focus on Intelligence Surveillance Reconnaissance (ISR), unmanned systems, force protection, cyber security, and missile defense.
Meanwhile, the fiscal 2017 budget proposal reflects an annual increase of approximately $2.2 billion over the fiscal 2016 budget. The increased spending would be allocated to certain key areas that can unlock significantly higher opportunities for Lockheed Martin.
Price Movement
Lockheed’s stock has improved about 23.64% in the last one year, outperforming the Zacks Categorized Aerospace/Defense industry’s gain of 11.86% over the same time frame. This could be because Lockheed continues to witness a steady flow of contracts from the Pentagon and other international customers.
Zacks Rank & Other Key Picks
Lockheed Martin currently has a Zacks Rank #2 (Buy). A few other favorably placed stocks in the aerospace and defense space include Engility Holdings, Inc. , Northrop Grumman Corporation (NOC - Free Report) and Leidos Holdings, Inc. (LDOS - Free Report) .
On an average, Engility delivered a positive earnings surprise of 23.19% in the trailing four quarters. The company’s 2016 earnings estimates increased 13.4% over the last 30 days. Engility sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Northrop Grumman, another Zacks Rank #1 stock, delivered a positive earnings surprise of 8.29% in the trailing four quarters. The company’s 2016 earnings estimates inched up 0.1% in the last 30 days.
Leidos Holdings carries a Zacks Rank #2 (Buy). The company’s 2016 earnings estimates increased 10.6% over the last 30 days. On an average, the company has delivered a positive earnings surprise of 12.20% in the trailing four quarters.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>