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Lockheed Martin Wins $181.2M Follow-Up Contract for F-35
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Lockheed Martin Corporation (LMT - Free Report) has secured a follow-up modification contract from the Naval Air Systems Command, MD for providing logistic services for the F-35 Lightning II aircraft. The contract is valued at $181.2 million.
Details of the Contract
The contract covers services including ground maintenance, action request resolution, depot activation, Automatic Logistics Information System, operations and maintenance, reliability, maintenance and health management implementation and support, supply chain management, and activities to provide and support pilot and maintainer initial training.
The majority of the work will be executed in Texas, with supplementary work performed in Florida, California, South Carolina as well as in the U.K.
The contract also includes purchases for the Air Force, Navy, Marine Corps, non-Department of Defense participants and foreign military sales customers (FMS).
Brief Note on the F-35 Lightning II
The F-35 Lightning II is the fifth-generation fighter, which combines advanced stealth with fighter speed and agility, fully fused sensor information, network-enabled operations and advanced sustainment.
Missions, such as intelligence, surveillance and reconnaissance and electronic attack, which could traditionally be performed by only a small number of specialized aircraft, can now be executed by a squadron of F-35s, offering new capabilities to many of the allied forces.
For 2016, Lockheed Martin expects to deliver another 53 units of the F-35. Production of the aircraft is expected to continue for many years going ahead, given the U.S. government’s current inventory target of 2,443 planes for the Air Force, Marine Corps and Navy.
Lockheed Martin generated 21% of its total sales from international customers in 2015 (up from 19.4% in 2014), including FMS. A key catalyst to this overseas growth remains the F-35 program, which generated 20% of total consolidated sales in 2015.
Price Movement
Lockheed Martin’s stock has improved about 16.5% in the last one year, outperforming the Zacks categorized Aerospace/Defense industry’s gain of 10.4%.
This can be attributed to the fact that 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.
Moreover, the fiscal 2017 budget proposal calls for 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.
Zacks Rank & 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 and Leidos Holdings, Inc. (LDOS - Free Report) .
On an average, Engility has 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 60 days. It sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) 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 increased 6% in the last 60 days.
Leidos Holdings carries a Zacks Rank #2. The company’s 2016 earnings estimates increased 10.3% over the last 60 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 Martin Wins $181.2M Follow-Up Contract for F-35
Lockheed Martin Corporation (LMT - Free Report) has secured a follow-up modification contract from the Naval Air Systems Command, MD for providing logistic services for the F-35 Lightning II aircraft. The contract is valued at $181.2 million.
Details of the Contract
The contract covers services including ground maintenance, action request resolution, depot activation, Automatic Logistics Information System, operations and maintenance, reliability, maintenance and health management implementation and support, supply chain management, and activities to provide and support pilot and maintainer initial training.
The majority of the work will be executed in Texas, with supplementary work performed in Florida, California, South Carolina as well as in the U.K.
The contract also includes purchases for the Air Force, Navy, Marine Corps, non-Department of Defense participants and foreign military sales customers (FMS).
Brief Note on the F-35 Lightning II
The F-35 Lightning II is the fifth-generation fighter, which combines advanced stealth with fighter speed and agility, fully fused sensor information, network-enabled operations and advanced sustainment.
Missions, such as intelligence, surveillance and reconnaissance and electronic attack, which could traditionally be performed by only a small number of specialized aircraft, can now be executed by a squadron of F-35s, offering new capabilities to many of the allied forces.
For 2016, Lockheed Martin expects to deliver another 53 units of the F-35. Production of the aircraft is expected to continue for many years going ahead, given the U.S. government’s current inventory target of 2,443 planes for the Air Force, Marine Corps and Navy.
Lockheed Martin generated 21% of its total sales from international customers in 2015 (up from 19.4% in 2014), including FMS. A key catalyst to this overseas growth remains the F-35 program, which generated 20% of total consolidated sales in 2015.
Price Movement
Lockheed Martin’s stock has improved about 16.5% in the last one year, outperforming the Zacks categorized Aerospace/Defense industry’s gain of 10.4%.
This can be attributed to the fact that 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.
Moreover, the fiscal 2017 budget proposal calls for 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.
Zacks Rank & 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 and Leidos Holdings, Inc. (LDOS - Free Report) .
On an average, Engility has 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 60 days. It sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) 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 increased 6% in the last 60 days.
Leidos Holdings carries a Zacks Rank #2. The company’s 2016 earnings estimates increased 10.3% over the last 60 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 >>