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Lockheed Martin (LMT) Wins $91.3M JAGMs Deal From US Army
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Lockheed Martin (LMT - Free Report) recently won a $91.3 million modification (P00069) to contract W31P4Q-15-C-0102 for the procurement of Joint Air-to-Ground missiles (JAGMs). The contract was awarded under the initial phases of the Low-rate Initial Production 3 by the U.S. Army Contracting Command, Redstone Arsenal, AL.
Work related to the deal will be carried out in Orlando, FL and is expected to be completed by Feb 28, 2022. Lockheed Martin will utilize both fiscal 2017 and 2018’s other procurement and Army funds for completing the task.
Joint Air-to-Ground Missiles
Joint Air-to-Ground Missiles (JAGMs) are precision-guided munitions used on Joint rotary and fixed-wing platforms and unmanned aerial systems (UAS) to destroy high-value stationary, moving and relocatable land and naval targets. JAGM is the intended replacement for Hellfire, air-launched TOW and Maverick families of missiles.
JAGM employs a multi-mode guidance section that combines improved Semi-Active Laser and millimeter wave radar sensors providing precision strike and fire-and-forget capability against stationary and moving land and maritime targets in adverse weather and obscured battlefield conditions.
What’s Favoring Lockheed Martin?
Increasing geopolitical and socioeconomic turmoil across the global map has prompted nations, both developed and developing, to expand the respective military arsenal with missiles constituting a significant portion of that inventory.
As one of the major missile makers in the United States, Lockheed Martin stands out among its peers by virtue of its broadly-diversified programs and strong order bookings. In third-quarter 2018, revenues at its Missiles and Fire Control unit came in at $2.3 billion, increasing 16.1% year over year, driven by higher sales for tactical and strike missiles programs plus sensors and global sustainment programs. At the end of the third quarter, total backlog of the Missiles and Fire Control unit was $19.9 billion.
As part of the fiscal 2019 defense budget proposal, $686.1 billion is being kept as funding for the Pentagon, reflecting 5% real growth over the initial fiscal 2018 Presidential budget. This increased spending provisions hint at the U.S. government’s more capex on defense primes like Lockheed Martin. We may expect a consistent order flow from Pentagon to help the company’s missile business unit generate a similar top-line improvement in the coming days.
Price Movement
Lockheed Martin’s stock has declined only 7.7% in the past six months compared with the industry’s fall of 8.9%.
Engility Holdings delivered average positive surprise of 19.98% in the last four reported quarters. The Zacks Consensus Estimate for 2018 earnings has moved 4% north to $2.10 in the last 60 days.
Boeing came up with average beat of 28.01% in the last four reported quarters. The Zacks Consensus Estimate for 2018 earnings has been revised 3.2% upward to $15.05 in the last 60 days.
American Outdoor Brands pulled off average earnings surprise of 64.88% in the last four reported quarters. The Zacks Consensus Estimate for 2018 earnings has been raised 9% to 73 cents in the last 60 days.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it. See them today for free >>
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Lockheed Martin (LMT) Wins $91.3M JAGMs Deal From US Army
Lockheed Martin (LMT - Free Report) recently won a $91.3 million modification (P00069) to contract W31P4Q-15-C-0102 for the procurement of Joint Air-to-Ground missiles (JAGMs). The contract was awarded under the initial phases of the Low-rate Initial Production 3 by the U.S. Army Contracting Command, Redstone Arsenal, AL.
Work related to the deal will be carried out in Orlando, FL and is expected to be completed by Feb 28, 2022. Lockheed Martin will utilize both fiscal 2017 and 2018’s other procurement and Army funds for completing the task.
Joint Air-to-Ground Missiles
Joint Air-to-Ground Missiles (JAGMs) are precision-guided munitions used on Joint rotary and fixed-wing platforms and unmanned aerial systems (UAS) to destroy high-value stationary, moving and relocatable land and naval targets. JAGM is the intended replacement for Hellfire, air-launched TOW and Maverick families of missiles.
JAGM employs a multi-mode guidance section that combines improved Semi-Active Laser and millimeter wave radar sensors providing precision strike and fire-and-forget capability against stationary and moving land and maritime targets in adverse weather and obscured battlefield conditions.
What’s Favoring Lockheed Martin?
Increasing geopolitical and socioeconomic turmoil across the global map has prompted nations, both developed and developing, to expand the respective military arsenal with missiles constituting a significant portion of that inventory.
As one of the major missile makers in the United States, Lockheed Martin stands out among its peers by virtue of its broadly-diversified programs and strong order bookings. In third-quarter 2018, revenues at its Missiles and Fire Control unit came in at $2.3 billion, increasing 16.1% year over year, driven by higher sales for tactical and strike missiles programs plus sensors and global sustainment programs. At the end of the third quarter, total backlog of the Missiles and Fire Control unit was $19.9 billion.
As part of the fiscal 2019 defense budget proposal, $686.1 billion is being kept as funding for the Pentagon, reflecting 5% real growth over the initial fiscal 2018 Presidential budget. This increased spending provisions hint at the U.S. government’s more capex on defense primes like Lockheed Martin. We may expect a consistent order flow from Pentagon to help the company’s missile business unit generate a similar top-line improvement in the coming days.
Price Movement
Lockheed Martin’s stock has declined only 7.7% in the past six months compared with the industry’s fall of 8.9%.
Zacks Rank & Other Stocks to Consider
Lockheed Martin currently carries a Zacks Rank #2 (Buy). A few other top-ranked stocks in the same sector are Engility Holdings , The Boeing Company (BA - Free Report) and American Outdoor Brands Corporation , each carrying a Zacks Rank 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Engility Holdings delivered average positive surprise of 19.98% in the last four reported quarters. The Zacks Consensus Estimate for 2018 earnings has moved 4% north to $2.10 in the last 60 days.
Boeing came up with average beat of 28.01% in the last four reported quarters. The Zacks Consensus Estimate for 2018 earnings has been revised 3.2% upward to $15.05 in the last 60 days.
American Outdoor Brands pulled off average earnings surprise of 64.88% in the last four reported quarters. The Zacks Consensus Estimate for 2018 earnings has been raised 9% to 73 cents in the last 60 days.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
See them today for free >>