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Bae Systems (BAESY) Wins $24M Contract From the US Navy

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Bae Systems PLC (BAESY - Free Report) announced that it has been awarded a $24 million contract by the U.S. Navy for selected restricted availability (SRA) for USS Port Royal (CG 73).

Details of the Contract

Per the contract, the company will provide planning, repair and alteration requirements work for the USS Port Royal (CG 73). The company will conduct repair and alteration to systems during the ship’s life cycle. Work related to the contract will be carried out at Pearl Harbor, HI and is expected to be over by Feb 2018.

Why Bae Systems?

Bae Systems provides advanced, technology-led defense, aerospace and security solutions supported by a skilled workforce of about 83,100 people spreadover its service territory of 40 countries. The company cordially works with customers and local partners, to develop, engineer, manufacture and support products and systems to deliver military capability along with protecting national security and keeping critical information and infrastructure secure.

Defense Scenario

President Trump proposed a 10% budget hike in the 2018 defense budget. This proposal focuses on destroying ISIS, increasing the total number of ships in the U.S. Navy fleet and building more F-35 Joint Strike fighter jets to expand the Air Force’s strength.

Buoyed by this, major defense giants like Bae Systems, Lockheed Martin Corp. (LMT - Free Report) , The Boeing Co. (BA - Free Report) and Northrop Grumman Corp. (NOC - Free Report) have been receiving regular contracts from the different agencies of the U.S. administration as well as foreign allies.

Price Movement

Shares of Bae Systems underperformed the broader industry in the last one year. The company’s shares have gained 12.4% compared with the industry’s advance of 24.2%.



The company’s business plan depends on regular inflow of contracts and lack of contacts could affect revenue and harm its operations.

Zacks Ranks

Bae Systems currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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