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 Secures $585M Deal to Develop HDR-H Radar
Read MoreHide Full Article
Lockheed Martin Corp. (LMT - Free Report) recently secured a $585.2-million contract for designing, developing and delivering the Homeland Defense Radar - Hawaii (HDR-H). The contract was awarded by the Missile Defense Agency, Redstone Arsenal, Alabama.
Work related to the deal will be executed in Moorestown, New Jersey and Oahu, Hawaii, and is expected to get completed by Dec 17, 2023.
A Brief Note on HDR-H
Lockheed Martin’s HDR-H radar is designed to provide autonomous acquisition, and persistent precision tracking and discrimination to optimize the defensive capability of the Ballistic Missile Defense System (BMDS) and counter evolving threats. The HDR-H radar system will help in increasing the ability of ground-based interceptors (GBI) to enhance the defense of Hawaii.
Our View
Lockheed Martin’s radar systems offer advanced precision targeting, navigation, threat detection and next generation intelligence, surveillance and reconnaissance (ISR) capabilities. The company’s radars and sensors have been significantly successful in U.S. military's operational environment.
From the context of its HDR-H radar system, the critical homeland defense system designed to defend against intercontinental ballistic missile threats from North Korea and Iran was a success last year. Notably, its importance grew in stature, leading to a rising demand.
Thanks to its advanced radar systems, the company’s Rotary and Mission Systems (RMS) unit enjoys a steady flow of contracts from the Pentagon, which, in turn, boosts this segment’s top line. Evidently, in the third quarter of 2018, the RMS business segment generated sales of $3.85 billion, reflecting a 14.4% year-over-year improvement and representing 26.9% of Lockheed Martin’s total sales. We may expect the latest contract win to boost this unit in a similar manner.
Currently, the company is developing advanced next generation radars and sensors equipped to detect, track and identify threats quickly. Considering this, more such radar-based contracts can be expected for Lockheed Martin.
Price Movement
Lockheed Martin’s stock has declined 12.6% in the past year compared with the industry’s fall of 6%. 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 companies in the same sector include Aerojet Rocketdyne Holdings , Teledyne Technologies Incorporated (TDY - Free Report) 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.
Teledyne Technologies came up with average positive earnings surprise of 12.92% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has increased 6% to $8.75 in the past 90 days.
Boeing delivered average positive earnings surprise of 28.01% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has moved up 3% to $15.05 in the past 90 days.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Lockheed Martin Secures $585M Deal to Develop HDR-H Radar
Lockheed Martin Corp. (LMT - Free Report) recently secured a $585.2-million contract for designing, developing and delivering the Homeland Defense Radar - Hawaii (HDR-H). The contract was awarded by the Missile Defense Agency, Redstone Arsenal, Alabama.
Work related to the deal will be executed in Moorestown, New Jersey and Oahu, Hawaii, and is expected to get completed by Dec 17, 2023.
A Brief Note on HDR-H
Lockheed Martin’s HDR-H radar is designed to provide autonomous acquisition, and persistent precision tracking and discrimination to optimize the defensive capability of the Ballistic Missile Defense System (BMDS) and counter evolving threats. The HDR-H radar system will help in increasing the ability of ground-based interceptors (GBI) to enhance the defense of Hawaii.
Our View
Lockheed Martin’s radar systems offer advanced precision targeting, navigation, threat detection and next generation intelligence, surveillance and reconnaissance (ISR) capabilities. The company’s radars and sensors have been significantly successful in U.S. military's operational environment.
From the context of its HDR-H radar system, the critical homeland defense system designed to defend against intercontinental ballistic missile threats from North Korea and Iran was a success last year. Notably, its importance grew in stature, leading to a rising demand.
Thanks to its advanced radar systems, the company’s Rotary and Mission Systems (RMS) unit enjoys a steady flow of contracts from the Pentagon, which, in turn, boosts this segment’s top line. Evidently, in the third quarter of 2018, the RMS business segment generated sales of $3.85 billion, reflecting a 14.4% year-over-year improvement and representing 26.9% of Lockheed Martin’s total sales. We may expect the latest contract win to boost this unit in a similar manner.
Currently, the company is developing advanced next generation radars and sensors equipped to detect, track and identify threats quickly. Considering this, more such radar-based contracts can be expected for Lockheed Martin.
Price Movement
Lockheed Martin’s stock has declined 12.6% in the past year compared with the industry’s fall of 6%. 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 companies in the same sector include Aerojet Rocketdyne Holdings , Teledyne Technologies Incorporated (TDY - Free Report) and The Boeing Company (BA - Free Report) .
While Aerojet Rocketdyne and Teledyne Technologies sport a Zacks Rank #1 (Strong Buy), Boeing carries 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.
Teledyne Technologies came up with average positive earnings surprise of 12.92% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has increased 6% to $8.75 in the past 90 days.
Boeing delivered average positive earnings surprise of 28.01% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has moved up 3% to $15.05 in the past 90 days.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>