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Raytheon (RTN) Secures Contract Worth $12M Under FMS to UAE
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Raytheon Company’s unit, Integrated Defense Systems has won a modification contract from the Missile Defense Agency under a foreign military sales agreement to the United Arab Emirates (UAE).
Details of the Contract
Per the $11.6 million contract, Raytheon will build maintenance software for missile defense system. Work is scheduled to be executed from Jun 7, 2017 through Aug 31, 2018 in Woburn, MA. The contract will use UAE foreign military sales funds for the same.
Why Raytheon?
Raytheon is one of the best-positioned companies among large-cap defense players due to its non-platform-centric focus. It has been heavily investing in technological upgrades as well. Notably, its next-generation solutions will enable the company to support the U.S. Navy and international customers with advanced capabilities to counter emerging threats, going forward.
Raytheon is distinctly focused on its overseas business. Foreign military contracts continue to be the vital growth driver for the company. International bookings comprised 33% of total first-quarter bookings, reflecting an increase of 14% year over year. During the quarter, international sales were up 7.5%, representing 32% of total sales.
Moreover, the company has been enjoying a steady stream of contracts from government establishments. Evidently, Raytheon won a modification contract worth $199.8 million from the U.S. Navy to procure 317 of the 17th Lot of AIM-9X Block II missiles — 107 for the Navy and 210 for the Air Force in April. Again, it won a contract from the U.S. Navy to provide engineering and technical services for Standard Missile, which will be used by the Navy, other government agencies and foreign military sales from fiscal 2017 through 2021.
Price Movement
Raytheon’s stock gained about 17.6% in the last 12 months, outperforming the Zacks categorized Aerospace-Defense Equipment industry’s gain of 16%. This could be because rising demand from the Middle East and North Africa region (MENA) and growth in FMS contracts are driving the stock. The company also poses strong competition to its peers, including Ducommun Incorporated (DCO - Free Report) , Curtiss-Wright Corporation (CW - Free Report) and Aerojet Rocketdyne Holdings, Inc. .
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Raytheon (RTN) Secures Contract Worth $12M Under FMS to UAE
Raytheon Company’s unit, Integrated Defense Systems has won a modification contract from the Missile Defense Agency under a foreign military sales agreement to the United Arab Emirates (UAE).
Details of the Contract
Per the $11.6 million contract, Raytheon will build maintenance software for missile defense system. Work is scheduled to be executed from Jun 7, 2017 through Aug 31, 2018 in Woburn, MA. The contract will use UAE foreign military sales funds for the same.
Why Raytheon?
Raytheon is one of the best-positioned companies among large-cap defense players due to its non-platform-centric focus. It has been heavily investing in technological upgrades as well. Notably, its next-generation solutions will enable the company to support the U.S. Navy and international customers with advanced capabilities to counter emerging threats, going forward.
Raytheon is distinctly focused on its overseas business. Foreign military contracts continue to be the vital growth driver for the company. International bookings comprised 33% of total first-quarter bookings, reflecting an increase of 14% year over year. During the quarter, international sales were up 7.5%, representing 32% of total sales.
Moreover, the company has been enjoying a steady stream of contracts from government establishments. Evidently, Raytheon won a modification contract worth $199.8 million from the U.S. Navy to procure 317 of the 17th Lot of AIM-9X Block II missiles — 107 for the Navy and 210 for the Air Force in April. Again, it won a contract from the U.S. Navy to provide engineering and technical services for Standard Missile, which will be used by the Navy, other government agencies and foreign military sales from fiscal 2017 through 2021.
Price Movement
Raytheon’s stock gained about 17.6% in the last 12 months, outperforming the Zacks categorized Aerospace-Defense Equipment industry’s gain of 16%. This could be because rising demand from the Middle East and North Africa region (MENA) and growth in FMS contracts are driving the stock. The company also poses strong competition to its peers, including Ducommun Incorporated (DCO - Free Report) , Curtiss-Wright Corporation (CW - Free Report) and Aerojet Rocketdyne Holdings, Inc. .
Zacks Rank
Raytheon currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Zacks just released a Special Report to guide you through a space that has already begun to transform our entire economy...
Last year, it was generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. Download Report with 3 Top Tech Stocks >>