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.
Lockheed Martin Wins $42M Deal to Support Aircraft Program
Read MoreHide Full Article
Lockheed Martin Corp’s (LMT - Free Report) Aeronautics Division recently secured a $41.5-million modification contract for procuring Xilinx and Intel-Altera Diminishing Manufacturing Sources parts to support future aircraft deliveries for the U.S. Air Force, Marine Corps and Navy as well as Foreign Military Sales (FMS) customers. The contract was awarded by the Naval Air Systems Command, Patuxent River, Maryland.
Details of the Deal
Work related to the deal will be executed in Fort Worth, TX and is expected to get completed in February 2019. The deal includes 55% of the work for the U.S. Air Force, 11% for the U.S. Navy, 33% for the U.S. Marine Corps and the remaining for the FMS customers.
Lockheed Martin will utilize fiscal 2017 aircraft procurement (Air Force), 2018 aircraft procurement (Air Force, Marine Corps and Navy), 2019 operations and maintenance (Air Force, Marine Corps, and Navy), and FMS funds for completing the task.
How Will the Deal Benefit Lockheed Martin?
The U.S. Navy has been purchasing field-programmable gate arrays (FPGAs), which are instrumental for the maintenance and long-term operation of military aircraft used by the U.S Defense forces.
The aforementioned award entails Lockheed Martin to procure FPGA's from suppliers like Xilinx and Diminishing Manufacturing Sources (DMS) parts from Intel-Altera. The use of these processors will not only provide real-time digital signal processing but also enable Lockheed Martin to include new waveforms within the software radio systems in its combat-proven aircraft programs.
Our View
Toward the end of June, the fiscal 2019 U.S. defense budget made provisions for spending $21.7 billion on aircraft. Such budgetary developments reflect solid growth prospects for the company’s Aeronautics Division, thereby bolstering its profit margin.
Lockheed Martin receives frequent contracts from its large customer base across the world, courtesy of its proven classified aircraft programs. This subsequently increases the demand for its technical services, spares and support equipment, which are essential for the effective functioning of fighter aircraft. Such rising demand, in turn, should boost the company’s total sales. To this end, we may expect the aforementioned contract to strengthen Lockheed Martin’s top line.
Price Movement
Lockheed Martin’s stock has declined 7.3% in the past year against the industry’s growth of 2.2%. The underperformance may have been caused by the intense competition the company faces in the aerospace-defense space for its broad portfolio of products and services, both domestically and internationally.
Zacks Rank & Other Key Picks
Lockheed Martin currently carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the same sector are Aerojet Rocketdyne Holdings , Raytheon Company and The Boeing Company (BA - Free Report) .
Aerojet Rocketdyne came up with average positive earnings surprise of 19.27% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has increased 43.3% to $1.82 in the past 90 days
Raytheon delivered average positive earnings surprise of 6.71% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has moved up 1.7% to $10.10 cents in the past 90 days.
Boeing pulled off average positive earnings surprise of 28.01% for the trailing four quarters. The Zacks Consensus Estimate for 2018 earnings has moved 3% north to $15.05 in the past 90 days.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Lockheed Martin Wins $42M Deal to Support Aircraft Program
Lockheed Martin Corp’s (LMT - Free Report) Aeronautics Division recently secured a $41.5-million modification contract for procuring Xilinx and Intel-Altera Diminishing Manufacturing Sources parts to support future aircraft deliveries for the U.S. Air Force, Marine Corps and Navy as well as Foreign Military Sales (FMS) customers. The contract was awarded by the Naval Air Systems Command, Patuxent River, Maryland.
Details of the Deal
Work related to the deal will be executed in Fort Worth, TX and is expected to get completed in February 2019. The deal includes 55% of the work for the U.S. Air Force, 11% for the U.S. Navy, 33% for the U.S. Marine Corps and the remaining for the FMS customers.
Lockheed Martin will utilize fiscal 2017 aircraft procurement (Air Force), 2018 aircraft procurement (Air Force, Marine Corps and Navy), 2019 operations and maintenance (Air Force, Marine Corps, and Navy), and FMS funds for completing the task.
How Will the Deal Benefit Lockheed Martin?
The U.S. Navy has been purchasing field-programmable gate arrays (FPGAs), which are instrumental for the maintenance and long-term operation of military aircraft used by the U.S Defense forces.
The aforementioned award entails Lockheed Martin to procure FPGA's from suppliers like Xilinx and Diminishing Manufacturing Sources (DMS) parts from Intel-Altera. The use of these processors will not only provide real-time digital signal processing but also enable Lockheed Martin to include new waveforms within the software radio systems in its combat-proven aircraft programs.
Our View
Toward the end of June, the fiscal 2019 U.S. defense budget made provisions for spending $21.7 billion on aircraft. Such budgetary developments reflect solid growth prospects for the company’s Aeronautics Division, thereby bolstering its profit margin.
Lockheed Martin receives frequent contracts from its large customer base across the world, courtesy of its proven classified aircraft programs. This subsequently increases the demand for its technical services, spares and support equipment, which are essential for the effective functioning of fighter aircraft. Such rising demand, in turn, should boost the company’s total sales. To this end, we may expect the aforementioned contract to strengthen Lockheed Martin’s top line.
Price Movement
Lockheed Martin’s stock has declined 7.3% in the past year against the industry’s growth of 2.2%. The underperformance may have been caused by the intense competition the company faces in the aerospace-defense space for its broad portfolio of products and services, both domestically and internationally.
Zacks Rank & Other Key Picks
Lockheed Martin currently carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the same sector are Aerojet Rocketdyne Holdings , Raytheon Company and The Boeing Company (BA - Free Report) .
While Aerojet Rocketdyne sports a Zacks Rank #1 (Strong Buy), Raytheon and Boeing carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Aerojet Rocketdyne came up with average positive earnings surprise of 19.27% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has increased 43.3% to $1.82 in the past 90 days
Raytheon delivered average positive earnings surprise of 6.71% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has moved up 1.7% to $10.10 cents in the past 90 days.
Boeing pulled off average positive earnings surprise of 28.01% for the trailing four quarters. The Zacks Consensus Estimate for 2018 earnings has moved 3% north to $15.05 in the past 90 days.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>