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Lockheed Martin Wins $7.2B GPS Satellite Deal From Air Force
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As per major media sources, Lockheed Martin Corp. (LMT - Free Report) recently clinched a $7.2-billion contract for the construction of 22 next-generation Global Positioning System (GPS) III satellites. The contract was awarded by the U.S. Air Force.
The GPS 3 satellites will be built at the company's Waterton campus in the Denver suburb of Littleton. Under a previous contract, Lockheed Martin is currently constructing 10 GPS III satellites for the Air Force.
More on Lockheed’s GPS 3 Satellites
Lockheed Martin’s GPS III Follow-On satellites will have three times better accuracy and up to eight times improved anti-jamming capabilities. As a result, spacecraft life will extend 25% than the newest GPS satellites on orbit today. GPS III’s new L1C civil signal will also make it the first GPS satellite to broadcast a compatible signal with other international global navigation satellite systems to improving connectivity for civilians.
GPS III will be equipped with a nickel hydrogen rechargeable battery, bipropellant hydrazine propulsion system, NTO oxidizer, 100lbs liquid apogee engines, unified S-band transponder, network communication element (NCE), navigation payload element (NPE), hosted payload element and antenna subsystem element. Additionally, all future Lockheed Martin GPS III satellites have validated compatibility with the next generation Operational Control System (OCX) and the existing GPS constellation, significantly mitigating risks from adding GPS III to the constellation.
Our View
Due to rising global geo-political tensions in recent times, strengthening a nation’s satellite communication by incorporating advanced technology has become a very pivotal requirement. In modern age, military intelligence, navigation & positioning, weather forecasting, digital video Broadcasting (DVB), and broadband internet services are the few demanding applications of satellite communication. These satellites help in strengthening a nation’s military prowess as they provide modern anti-jam potentialities, superior system security, accuracy, reliability, and meliorated position, navigation and timing services.
With rapidly rising demand for new-age satellite communication, satellite developers like Lockheed Martin have increased their focus in innovating even more advanced satellites and associated equipment.
Interestingly, in the second quarter of 2018, Lockheed Martin's space systems business achieved important milestones including the successful launch of its SBIRS GEO Flight-4 satellite with powerful sensors. This satellite comes with the capability to provide global coverage and increased accuracy to detect greater number of targets. The company is expected to win more contracts, like the latest one, for its GPS and missile warning satellites from the U.S. Air Force owing to such major developments along with rising demand for enhanced satellites. Such notable contract wins should improve Lockheed Martin’s overall profit margin.
Notably, Lockheed Martin’s Space division witnessed 0.7% sales drop year over year in the second quarter, primarily driven by lower net sales for government satellite programs. To this end, we may expect the company to report improved top-line numbers, courtesy of the latest $7.2-billion contract win.
Anticipating a solid inflow of contracts from Pentagon, the company has increased its 2018 sales outlook for its Space Systems segment by $350 million. Furthermore, with the acquisition of the latest contract, we may expect Lockheed Martin to also increase its sales outlook for the segment, toward the end of the third quarter.
As per a report by Markets and Markets research firm, the Global Navigation Satellite Systems (GNSS) market is projected see a CAGR of 9% during 2018-2022. We may expect the aforementioned developments to play in favor of Lockheed Martin and the company, being Pentagon’s largest defense contractor, can be expected to capture more shares in the expanding GNSS market, going ahead.
Price Movement
Lockheed Martin’s stock has improved about only 11.7% in the last year compared with the industry’s growth of 22.2%. The underperformance may have been caused by intense competition in the aerospace-defense space for its broad portfolio of products and services, both domestically as well as internationally.
Zacks Rank & Stocks to Consider
Lockheed Martin currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the same sector are Aerojet Rocketdyne Holdings , Engility Holdings and Huntington Ingalls Industries (HII - Free Report) .
Aerojet Rocketdyne came up with an average positive earnings surprise of 9.27% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has risen 30.9% to $1.27 in the last 90 days.
Engility Holdings delivered an average positive earnings surprise of 19% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has moved up 16.1% to $2.02 in the last 90 days.
Huntington Ingalls pulled off an average positive earnings surprise of 9.48% for the trailing four quarters. The Zacks Consensus Estimate for 2018 earnings has moved 6.4% north to $17.24 in the last 90 days.
5 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2018 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs. A bonus Zacks Special Report names this breakthrough and the 5 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains.
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Lockheed Martin Wins $7.2B GPS Satellite Deal From Air Force
As per major media sources, Lockheed Martin Corp. (LMT - Free Report) recently clinched a $7.2-billion contract for the construction of 22 next-generation Global Positioning System (GPS) III satellites. The contract was awarded by the U.S. Air Force.
The GPS 3 satellites will be built at the company's Waterton campus in the Denver suburb of Littleton. Under a previous contract, Lockheed Martin is currently constructing 10 GPS III satellites for the Air Force.
More on Lockheed’s GPS 3 Satellites
Lockheed Martin’s GPS III Follow-On satellites will have three times better accuracy and up to eight times improved anti-jamming capabilities. As a result, spacecraft life will extend 25% than the newest GPS satellites on orbit today. GPS III’s new L1C civil signal will also make it the first GPS satellite to broadcast a compatible signal with other international global navigation satellite systems to improving connectivity for civilians.
GPS III will be equipped with a nickel hydrogen rechargeable battery, bipropellant hydrazine propulsion system, NTO oxidizer, 100lbs liquid apogee engines, unified S-band transponder, network communication element (NCE), navigation payload element (NPE), hosted payload element and antenna subsystem element. Additionally, all future Lockheed Martin GPS III satellites have validated compatibility with the next generation Operational Control System (OCX) and the existing GPS constellation, significantly mitigating risks from adding GPS III to the constellation.
Our View
Due to rising global geo-political tensions in recent times, strengthening a nation’s satellite communication by incorporating advanced technology has become a very pivotal requirement. In modern age, military intelligence, navigation & positioning, weather forecasting, digital video Broadcasting (DVB), and broadband internet services are the few demanding applications of satellite communication. These satellites help in strengthening a nation’s military prowess as they provide modern anti-jam potentialities, superior system security, accuracy, reliability, and meliorated position, navigation and timing services.
With rapidly rising demand for new-age satellite communication, satellite developers like Lockheed Martin have increased their focus in innovating even more advanced satellites and associated equipment.
Interestingly, in the second quarter of 2018, Lockheed Martin's space systems business achieved important milestones including the successful launch of its SBIRS GEO Flight-4 satellite with powerful sensors. This satellite comes with the capability to provide global coverage and increased accuracy to detect greater number of targets. The company is expected to win more contracts, like the latest one, for its GPS and missile warning satellites from the U.S. Air Force owing to such major developments along with rising demand for enhanced satellites. Such notable contract wins should improve Lockheed Martin’s overall profit margin.
Notably, Lockheed Martin’s Space division witnessed 0.7% sales drop year over year in the second quarter, primarily driven by lower net sales for government satellite programs. To this end, we may expect the company to
report improved top-line numbers, courtesy of the latest $7.2-billion contract win.
Anticipating a solid inflow of contracts from Pentagon, the company has increased its 2018 sales outlook for its Space Systems segment by $350 million. Furthermore, with the acquisition of the latest contract, we may expect Lockheed Martin to also increase its sales outlook for the segment, toward the end of the third quarter.
As per a report by Markets and Markets research firm, the Global Navigation Satellite Systems (GNSS) market is projected see a CAGR of 9% during 2018-2022. We may expect the aforementioned developments to play in favor of Lockheed Martin and the company, being Pentagon’s largest defense contractor, can be expected to capture more shares in the expanding GNSS market, going ahead.
Price Movement
Lockheed Martin’s stock has improved about only 11.7% in the last year compared with the industry’s growth of 22.2%. The underperformance may have been caused by intense competition in the aerospace-defense space for its broad portfolio of products and services, both domestically as well as internationally.
Zacks Rank & Stocks to Consider
Lockheed Martin currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the same sector are Aerojet Rocketdyne Holdings , Engility Holdings and Huntington Ingalls Industries (HII - Free Report) .
While Aerojet Rocketdyne sports a Zacks Rank #1 (Strong Buy), Huntington Ingalls and Engility carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Aerojet Rocketdyne came up with an average positive earnings surprise of 9.27% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has risen 30.9% to $1.27 in the last 90 days.
Engility Holdings delivered an average positive earnings surprise of 19% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has moved up 16.1% to $2.02 in the last 90 days.
Huntington Ingalls pulled off an average positive earnings surprise of 9.48% for the trailing four quarters. The Zacks Consensus Estimate for 2018 earnings has moved 6.4% north to $17.24 in the last 90 days.
5 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2018 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost
nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs. A bonus Zacks Special Report names this breakthrough and the 5 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains.
Click to see them right now >>