We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Raytheon Wins $90M Deal for Digital Radar Warning Receiver
Read MoreHide Full Article
Raytheon Company’s Space and Airborne Systems (SAS) business unit recently won a contract for supplying the AN/ALR-69A Digital Radar Warning Receiver System. The deal came under the foreign military sales (FMS) program that would further support its production requirements.
Details of the Deal
The contract is valued at $90 million and has been awarded by the Air Force Life Cycle Management Center, Electronic Warfare, Robins Air Force Base, Georgia. Per the terms, Raytheon will offer fabrication, integration, testing and delivery of line replaceable and shop replaceable units for the radar system.
Work related to the deal will be executed in Goleta, CA and Forest, MS. The entire work is scheduled to be completed by May 2023. Raytheon will utilize Japanese foreign military sales funds to partially finance the task.
A Brief Note on AN/ALR-69A Radar System
Raytheon’s AN/ALR-69A is the world’s first all-digital radar warning receiver that offers situational awareness in an affordable price. The ALR-69A(V) helps in the suppression of enemy air defenses, provides easy cross-platform integration, enhanced spectral and spatial coverage for high-sensitivity detection in dense signal environments. Per Raytheon, the ALR-69A is compatible with virtually any airborne platform.
The upgraded system currently offers aircrews more options with its single-ship geolocation capability, providing them precise information on ground-based threat locations and precision-direction finding for airborne threats.
What’s Favoring Raytheon?
Raytheon’s Space and Airborne Systems (SAS) unit, which manufacture radar warning receivers, highly specializes in developing integrated sensors and communication systems for advanced warfare based missions. Raytheon's Electronic warfare products have been successfully able to earn a worldwide reputation for performance and reliability, over the last five decades.
Over the past few years, Raytheon has witnessed radar related success from major investments including those made in Gallium Nitride (GaN), which helps in amplifying radio energy for radars, jammers and other devices.
Notably, Raytheon’s SAS unit reported first quarter 2018 revenues of $1.57 billion, that inched up a mere 1% year over year. We may expect the latest contract win to add more impetus to this unit’s growth in the second quarter.
Furthermore, President Trump’s fiscal 2019 defense budget proposed includes an investment plan of $13.7 billion in science and technology, which includes electronic warfare technologies as well.
Considering such favorable budgetary revisions, we expect the company to win more such radar related contracts in days ahead.
Price Movement
Raytheon’s stock has improved about 29.3% in the last twelve months, compared with the broader industry’s gain of 27.4%. The outperformance was most likely led by the company’s strong international sales and a robust balance sheet.
Zacks Rank & Key Picks
Raytheon Martin currently carries a Zacks Rank #3 (Hold). A few top-ranked stocks in the same sector are AeroVironment, Inc. (AVAV - Free Report) , L3 Technologies Inc. and Wesco Aircraft Holdings, Inc. . While AeroVironment sports a Zacks Rank #1 (Strong Buy), L3 Technologies and Wesco Aircraft Holdings carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AeroVironment recorded an average positive earnings surprise of 147.43% in the last four quarters. The company’s long-term growth rate is pegged at 20%.
L3 Technologies recorded an average positive earnings surprise of 7.42% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has risen by 1.9% to $9.64 in the last 90 days.
Wesco Aircraft Holdings long-term growth rate is pegged at 12%. The Zacks Consensus Estimate for 2018 earnings has risen by 10% to 77 cents in the last 90 days.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Raytheon Wins $90M Deal for Digital Radar Warning Receiver
Raytheon Company’s Space and Airborne Systems (SAS) business unit recently won a contract for supplying the AN/ALR-69A Digital Radar Warning Receiver System. The deal came under the foreign military sales (FMS) program that would further support its production requirements.
Details of the Deal
The contract is valued at $90 million and has been awarded by the Air Force Life Cycle Management Center, Electronic Warfare, Robins Air Force Base, Georgia. Per the terms, Raytheon will offer fabrication, integration, testing and delivery of line replaceable and shop replaceable units for the radar system.
Work related to the deal will be executed in Goleta, CA and Forest, MS. The entire work is scheduled to be completed by May 2023. Raytheon will utilize Japanese foreign military sales funds to partially finance the task.
A Brief Note on AN/ALR-69A Radar System
Raytheon’s AN/ALR-69A is the world’s first all-digital radar warning receiver that offers situational awareness in an affordable price. The ALR-69A(V) helps in the suppression of enemy air defenses, provides easy cross-platform integration, enhanced spectral and spatial coverage for high-sensitivity detection in dense signal environments. Per Raytheon, the ALR-69A is compatible with virtually any airborne platform.
The upgraded system currently offers aircrews more options with its single-ship geolocation capability, providing them precise information on ground-based threat locations and precision-direction finding for airborne threats.
What’s Favoring Raytheon?
Raytheon’s Space and Airborne Systems (SAS) unit, which manufacture radar warning receivers, highly specializes in developing integrated sensors and communication systems for advanced warfare based missions. Raytheon's Electronic warfare products have been successfully able to earn a worldwide reputation for performance and reliability, over the last five decades.
Over the past few years, Raytheon has witnessed radar related success from major investments including those made in Gallium Nitride (GaN), which helps in amplifying radio energy for radars, jammers and other devices.
Notably, Raytheon’s SAS unit reported first quarter 2018 revenues of $1.57 billion, that inched up a mere 1% year over year. We may expect the latest contract win to add more impetus to this unit’s growth in the second quarter.
Furthermore, President Trump’s fiscal 2019 defense budget proposed includes an investment plan of $13.7 billion in science and technology, which includes electronic warfare technologies as well.
Considering such favorable budgetary revisions, we expect the company to win more such radar related contracts in days ahead.
Price Movement
Raytheon’s stock has improved about 29.3% in the last twelve months, compared with the broader industry’s gain of 27.4%. The outperformance was most likely led by the company’s strong international sales and a robust balance sheet.
Zacks Rank & Key Picks
Raytheon Martin currently carries a Zacks Rank #3 (Hold). A few top-ranked stocks in the same sector are AeroVironment, Inc. (AVAV - Free Report) , L3 Technologies Inc. and Wesco Aircraft Holdings, Inc. . While AeroVironment sports a Zacks Rank #1 (Strong Buy), L3 Technologies and Wesco Aircraft Holdings carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AeroVironment recorded an average positive earnings surprise of 147.43% in the last four quarters. The company’s long-term growth rate is pegged at 20%.
L3 Technologies recorded an average positive earnings surprise of 7.42% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has risen by 1.9% to $9.64 in the last 90 days.
Wesco Aircraft Holdings long-term growth rate is pegged at 12%. The Zacks Consensus Estimate for 2018 earnings has risen by 10% to 77 cents in the last 90 days.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>