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Lockheed Martin (LMT) Wins Army Deal to Upgrade PAC-3 System
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Lockheed Martin Corp. (LMT - Free Report) recently secured a modification contract for providing ground and flight test support to post-deployment build (PDB)-8.1 Phased Array Tracking to Intercept Of Target (PATRIOT) Advanced Capability-3 (PAC-3) system. Work related to the deal is scheduled to be over by Apr 30, 2022.
Valued at $46.7 million, the contract was awarded by the U.S. Army Contracting Command, Red Stone Arsenal, Alabama. Fiscal 2018 research, development, test and evaluation funds will be utilized to partially finance the task. Operations under the award will be carried out in Dallas, TX.
A Brief Note on PAC-3 Missiles & PDB
The PAC-3 missile system is a long range, air defense and medium to high-altitude guided missile system. It is developed to counter tactical ballistic missiles, cruise missiles and advanced aircraft. The system’s radar set provides tactical functions of airspace surveillance, target detection, identification, classification, tracking, missile guidance and engagement support.
Now, PDB 8.1 is a major software upgrade incorporated in PAC-3 system to improve communications and system capabilities of the missiles against threats. Notably, this upgrade offers significant enhancements to allow radar to support the PAC-3 Missile Segment Enhancement (MSE) range; address misclassification to prevent erroneous engagements and fratricides; improve ability to search, discriminate, and destroy tactical ballistic missiles as well as provide protection against electronic attacks.
PAC-3’s Growth Prospects
Lockheed Martin’s Missile and Fire Control (MFC) unit is one of the forerunners in the missile defense space. This division manufactures advanced combat, missile, rocket, manned and unmanned systems for the U.S. government and foreign allies. In relation to the aforementioned contract win, it is worth mentioning that PAC-3 is among the company’s top-notch missile systems.
Coming to this missile systems’ performance in recent times, PAC-3 team achieved several notable milestones in the first quarter of 2018. Evidently, Lockheed Martin won an award worth $500 million from the U.S. and international customers for upgradation of their missile defense capabilities using the company’s PAC-3 and PAC-3 missile segment enhancement (MSE), interceptors, lot kits, spares and support equipment.
The company also signed major agreements with the U.S. and Polish officials, under which Poland became the fifth international PAC-3 MSE customer. Needless to say, such inflow of orders tends to fuel Lockheed Martin’s top-line growth. In first-quarter 2018, its MFC segment recorded net sales of $1.7 billion, reflecting a solid 8% improvement from the year-ago quarter.
In the coming days, the demand for these combat-proven missiles is anticipated to increase, courtesy of the PAC-3 system’s software upgrades. Additionally, the MFC segment is expected to continue with its trend of delivering top-line growth in the second quarter of 2018.
In February 2018, President Trump proposed fiscal 2019 defense budget that includes an investment plan of $1.1 billion for procuring 240 PAC-3 MSE. With widespread geo-political conflicts across the globe, such funding provisions is likely to keep Lockheed Martin on a growth trajectory.
Price Performance
In a year’s time, shares of Lockheed Martin have rallied about 13.9% compared with the broader industry’s increase of 43.9%. This underperformance might have been due to intense competition in domestic and international markets.
Zacks Rank & Stocks to Consider
Lockheed Martin currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the same sector are AeroVironment (AVAV - Free Report) , Boeing (BA - Free Report) and Wesco Aircraft Holdings . While AeroVironment sports a Zacks Rank #1 (Strong Buy), Boeing and Wesco Aircraft carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AeroVironment delivered an average positive earnings surprise of 147.43% in the last four quarters. The Zacks Consensus Estimate for fiscal 2019 earnings rose by 10 cents to $1.00 in the past 60 days.
Boeing pulled off an average positive earnings surprise of 29.51% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings moved north by 56 cents to $14.61 in the past 60 days.
Wesco Aircraft came up with a positive earnings surprise of 29.41% in the second quarter of fiscal 2018. The Zacks Consensus Estimate for fiscal 2018 earnings moved up by 7 cents to 77 cents in the past 60 days.
The Hottest Tech Mega-Trend of All
Last year, it generated $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 regular investors who make the right trades early.
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Lockheed Martin (LMT) Wins Army Deal to Upgrade PAC-3 System
Lockheed Martin Corp. (LMT - Free Report) recently secured a modification contract for providing ground and flight test support to post-deployment build (PDB)-8.1 Phased Array Tracking to Intercept Of Target (PATRIOT) Advanced Capability-3 (PAC-3) system. Work related to the deal is scheduled to be over by Apr 30, 2022.
Valued at $46.7 million, the contract was awarded by the U.S. Army Contracting Command, Red Stone Arsenal, Alabama. Fiscal 2018 research, development, test and evaluation funds will be utilized to partially finance the task. Operations under the award will be carried out in Dallas, TX.
A Brief Note on PAC-3 Missiles & PDB
The PAC-3 missile system is a long range, air defense and medium to high-altitude guided missile system. It is developed to counter tactical ballistic missiles, cruise missiles and advanced aircraft. The system’s radar set provides tactical functions of airspace surveillance, target detection, identification, classification, tracking, missile guidance and engagement support.
Now, PDB 8.1 is a major software upgrade incorporated in PAC-3 system to improve communications and system capabilities of the missiles against threats. Notably, this upgrade offers significant enhancements to allow radar to support the PAC-3 Missile Segment Enhancement (MSE) range; address misclassification to prevent erroneous engagements and fratricides; improve ability to search, discriminate, and destroy tactical ballistic missiles as well as provide protection against electronic attacks.
PAC-3’s Growth Prospects
Lockheed Martin’s Missile and Fire Control (MFC) unit is one of the forerunners in the missile defense space. This division manufactures advanced combat, missile, rocket, manned and unmanned systems for the U.S. government and foreign allies. In relation to the aforementioned contract win, it is worth mentioning that PAC-3 is among the company’s top-notch missile systems.
Coming to this missile systems’ performance in recent times, PAC-3 team achieved several notable milestones in the first quarter of 2018. Evidently, Lockheed Martin won an award worth $500 million from the U.S. and international customers for upgradation of their missile defense capabilities using the company’s PAC-3 and PAC-3 missile segment enhancement (MSE), interceptors, lot kits, spares and support equipment.
The company also signed major agreements with the U.S. and Polish officials, under which Poland became the fifth international PAC-3 MSE customer. Needless to say, such inflow of orders tends to fuel Lockheed Martin’s top-line growth. In first-quarter 2018, its MFC segment recorded net sales of $1.7 billion, reflecting a solid 8% improvement from the year-ago quarter.
In the coming days, the demand for these combat-proven missiles is anticipated to increase, courtesy of the PAC-3 system’s software upgrades. Additionally, the MFC segment is expected to continue with its trend of delivering top-line growth in the second quarter of 2018.
In February 2018, President Trump proposed fiscal 2019 defense budget that includes an investment plan of $1.1 billion for procuring 240 PAC-3 MSE. With widespread geo-political conflicts across the globe, such funding provisions is likely to keep Lockheed Martin on a growth trajectory.
Price Performance
In a year’s time, shares of Lockheed Martin have rallied about 13.9% compared with the broader industry’s increase of 43.9%. This underperformance might have been due to intense competition in domestic and international markets.
Zacks Rank & Stocks to Consider
Lockheed Martin currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the same sector are AeroVironment (AVAV - Free Report) , Boeing (BA - Free Report) and Wesco Aircraft Holdings . While AeroVironment sports a Zacks Rank #1 (Strong Buy), Boeing and Wesco Aircraft carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AeroVironment delivered an average positive earnings surprise of 147.43% in the last four quarters. The Zacks Consensus Estimate for fiscal 2019 earnings rose by 10 cents to $1.00 in the past 60 days.
Boeing pulled off an average positive earnings surprise of 29.51% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings moved north by 56 cents to $14.61 in the past 60 days.
Wesco Aircraft came up with a positive earnings surprise of 29.41% in the second quarter of fiscal 2018. The Zacks Consensus Estimate for fiscal 2018 earnings moved up by 7 cents to 77 cents in the past 60 days.
The Hottest Tech Mega-Trend of All
Last year, it generated $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 regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>