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Boeing-Lockheed JV Unit Wins $354M AFSPC Satellite Contract
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The subsidiary of United Launch Alliance (“ULA”), a joint venture of Lockheed Martin Corp. (LMT - Free Report) and The Boeing Co. (BA - Free Report) , secured a contract for its satellite launch services. Per the terms, United Launch Services, LLC (“ULS”) — the subsidiary — will deliver AFSPC-8 and AFSPC-12 satellites to their intended orbit.
Details of the Deal
Awarded by the Contracting Division, Launch Systems Enterprise Directorate, Space and Missile Systems Center, Los Angeles Air Force Base, CA and is valued at $354.8 million.
Per the modification contract, ULS will carry out launch vehicle production, mission integration, launch operations and spaceflight certification for the AFSPC-8 and AFSPC-12 missions.
Operations will be completed by March 2020 to deliver the AFSPC-12 satellites. The AFSPC-8 satellites will be delivered post the completion of operations in June 2020.
Tasks related to the contract will be executed in Centennial, CO; Decatur, AL; and Cape Canaveral, FL. ULS will utilize fiscal 2017 and 2018 space procurement as well as fiscal 2018 research, development, test and evaluation funds to complete operations.
About ULA
Formed in 2006, ULA provides the U.S. government with affordable, reliable and assured access to space. It has three launch vehicles — Atlas V, Delta IV and Delta II. ULA's launch vehicles have played a major role in the U.S. space ventures, with high commitment toward crew safety and mission success.
Our View
ULS has been serving as the nation’s launch services provider with its Delta IV and Atlas V rockets for more than a decade. The subsidiary incorporates latest technologies to ensure mission success within a reasonable cost. Till date, ULS has successfully launched more than 100 satellites in the orbit, which provide critical information to the military and enable personal device-based GPS navigation.
With increasing number of threats in the cyber security space, military satellites like AFSPC-8 and AFSPC-12 have emerged as an integral component for national security. To enhance defense capabilities, the United States has been making major investments, especially during President Trump’s tenure. The recently released fiscal 2019 defense budget proposes provisions for space investment of $4.3 billion to strengthen the nation’s space capabilities, including launch vehicles and satellites.
This indicates possibilities for more contract wins, which will boost the growth trajectory of Boeing and Lockheed Martin.
Price Movement
Lockheed Martin’s shares have gained 23.1% in the last year, compared with the broader industry’s rally of 43.4%. The underperformance was caused by intense competition in the domestic and international markets.
Meanwhile, Boeing’s shares have gained 84.8%, compared with the broader industry’s rally. The outperformance can be attributed to the demand for its military jets along with robust worldwide demand for commercial aircraft.
Zacks Rank & Key Picks
Boeing sports a Zacks Rank #1 (Strong Buy), while Lockheed Martin carries a Zacks Rank #3 (Hold).
Huntington Ingalls delivered an average positive earnings surprise of 3.85% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has risen by $5.44 to $17.38 in the last 90 days.
Spirit Aerosystems has an average positive earnings surprise of 9.76% for the last four quarters. The Zacks Consensus Estimate for 2018 earnings rose by 81 cents to $6.30 in the last 90 days.
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Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
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Boeing-Lockheed JV Unit Wins $354M AFSPC Satellite Contract
The subsidiary of United Launch Alliance (“ULA”), a joint venture of Lockheed Martin Corp. (LMT - Free Report) and The Boeing Co. (BA - Free Report) , secured a contract for its satellite launch services. Per the terms, United Launch Services, LLC (“ULS”) — the subsidiary — will deliver AFSPC-8 and AFSPC-12 satellites to their intended orbit.
Details of the Deal
Awarded by the Contracting Division, Launch Systems Enterprise Directorate, Space and Missile Systems Center, Los Angeles Air Force Base, CA and is valued at $354.8 million.
Per the modification contract, ULS will carry out launch vehicle production, mission integration, launch operations and spaceflight certification for the AFSPC-8 and AFSPC-12 missions.
Operations will be completed by March 2020 to deliver the AFSPC-12 satellites. The AFSPC-8 satellites will be delivered post the completion of operations in June 2020.
Tasks related to the contract will be executed in Centennial, CO; Decatur, AL; and Cape Canaveral, FL. ULS will utilize fiscal 2017 and 2018 space procurement as well as fiscal 2018 research, development, test and evaluation funds to complete operations.
About ULA
Formed in 2006, ULA provides the U.S. government with affordable, reliable and assured access to space. It has three launch vehicles — Atlas V, Delta IV and Delta II. ULA's launch vehicles have played a major role in the U.S. space ventures, with high commitment toward crew safety and mission success.
Our View
ULS has been serving as the nation’s launch services provider with its Delta IV and Atlas V rockets for more than a decade. The subsidiary incorporates latest technologies to ensure mission success within a reasonable cost. Till date, ULS has successfully launched more than 100 satellites in the orbit, which provide critical information to the military and enable personal device-based GPS navigation.
With increasing number of threats in the cyber security space, military satellites like AFSPC-8 and AFSPC-12 have emerged as an integral component for national security. To enhance defense capabilities, the United States has been making major investments, especially during President Trump’s tenure. The recently released fiscal 2019 defense budget proposes provisions for space investment of $4.3 billion to strengthen the nation’s space capabilities, including launch vehicles and satellites.
This indicates possibilities for more contract wins, which will boost the growth trajectory of Boeing and Lockheed Martin.
Price Movement
Lockheed Martin’s shares have gained 23.1% in the last year, compared with the broader industry’s rally of 43.4%. The underperformance was caused by intense competition in the domestic and international markets.
Meanwhile, Boeing’s shares have gained 84.8%, compared with the broader industry’s rally. The outperformance can be attributed to the demand for its military jets along with robust worldwide demand for commercial aircraft.
Zacks Rank & Key Picks
Boeing sports a Zacks Rank #1 (Strong Buy), while Lockheed Martin carries a Zacks Rank #3 (Hold).
A few top-ranked stocks in the same sector are Huntington Ingalls (HII - Free Report) and Spirit Aerosystems (SPR - Free Report) , each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Huntington Ingalls delivered an average positive earnings surprise of 3.85% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has risen by $5.44 to $17.38 in the last 90 days.
Spirit Aerosystems has an average positive earnings surprise of 9.76% for the last four quarters. The Zacks Consensus Estimate for 2018 earnings rose by 81 cents to $6.30 in the last 90 days.
Can Hackers Put Money INTO Your Portfolio?
Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
Download the new report now>>