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Defense Stock Roundup: Boeing Reports Mixed Q4 Deliveries, Lockheed Martin Scores Big
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A moderate flow of funds from the Pentagon kept the U.S. defense stocks buoyant over the trailing five trading sessions. As a result, major indices of the aerospace and defense industry ended in the green. Notably, the S&P 500 Aerospace & Defense (Industry) and the Dow Jones U.S. Aerospace & Defense indices rose approximately 1.7% in the past five trading sessions.
Among last week’s highlights, defense majors namely Lockheed Martin Corp. (LMT - Free Report) , Northrop Grumman Corp. (NOC - Free Report) and General Dynamics (GD - Free Report) secured a number of notable deals from the Department of Defense’s daily funding session. Meanwhile, The Boeing Company (BA - Free Report) released its fourth quarter and 2018 delivery numbers.
Recap of Past Week’s Important Stories
1. Lockheed Martin’s Aeronautics business division secured a contract for offering sustainment engineering services to the C-5 airlifter program. Work related to the deal is scheduled to be completed by Jan 25, 2019.
2. Northrop Grumman’s business unit, Northrop Grumman Systems Corp., recently secured an $86.2-million contract for supporting Starlite system. The contract was awarded by the U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland.
3. General Dynamics’ business subsidiary, National Steel and Shipbuilding Co. (NASSCO), recently clinched a $91.5-million modification contract for performing fiscal 2019 dry-docking phased maintenance work on the USS George H.W. Bush (CVN 77) super carrier ship.
4. Boeing’s fourth-quarter 2018 delivery figures reflected an annual improvement of 13.9% in commercial shipments and decline 25.6% in defense shipments. The company reported commercial deliveries of 806 jets in 2018, up on higher deliveries of 737, 767 and 787 airplanes. The figure came below the company’s delivery guidance of 810 to 815 planes.
Over the past five trading sessions, defense biggies have put up a solid show. L3 Technologies gained the most, with its shares rising 4.3% in past five trading days.
The industry's performance over the last six months has however been dismal, except Boeing, shares of which reflected a positive return. This time Textron lost the most, with its share price plummeting 29%, followed by Raytheon.
The following table shows the price movement of major defense players over the past five trading days and during the last six months.
Company
Last Week
Last 6 Months
LMT
1.54%
-13.31%
BA
3.44%
0.41%
GD
2.82%
-15.36%
RTN
1.86%
-19.83%
NOC
3.18%
-19.52%
TXT
1.26%
-28.45%
LLL
4.30%
-12.36%
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Defense Stock Roundup: Boeing Reports Mixed Q4 Deliveries, Lockheed Martin Scores Big
A moderate flow of funds from the Pentagon kept the U.S. defense stocks buoyant over the trailing five trading sessions. As a result, major indices of the aerospace and defense industry ended in the green. Notably, the S&P 500 Aerospace & Defense (Industry) and the Dow Jones U.S. Aerospace & Defense indices rose approximately 1.7% in the past five trading sessions.
Among last week’s highlights, defense majors namely Lockheed Martin Corp. (LMT - Free Report) , Northrop Grumman Corp. (NOC - Free Report) and General Dynamics (GD - Free Report) secured a number of notable deals from the Department of Defense’s daily funding session. Meanwhile, The Boeing Company (BA - Free Report) released its fourth quarter and 2018 delivery numbers.
Recap of Past Week’s Important Stories
1. Lockheed Martin’s Aeronautics business division secured a contract for offering sustainment engineering services to the C-5 airlifter program. Work related to the deal is scheduled to be completed by Jan 25, 2019.
Valued at $131.6 million, the contract was awarded by the Air Force Life Cycle Management Center, Robins Air Force Base, GA (read more: Lockheed Martin Wins $132M Deal for C-5 Airlifter Program).
2. Northrop Grumman’s business unit, Northrop Grumman Systems Corp., recently secured an $86.2-million contract for supporting Starlite system. The contract was awarded by the U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland.
Work related to the deal is scheduled to complete by Jan 31, 2023 (read more: Northrop Wins $86M Deal to Support Starlite Radar System).
3. General Dynamics’ business subsidiary, National Steel and Shipbuilding Co. (NASSCO), recently clinched a $91.5-million modification contract for performing fiscal 2019 dry-docking phased maintenance work on the USS George H.W. Bush (CVN 77) super carrier ship.
The deal was awarded by the Mid-Atlantic Regional Maintenance Center, Norfolk, VA (read more: General Dynamics' NASSCO Wins $91M Deal to Repair USS CVN 77).
4. Boeing’s fourth-quarter 2018 delivery figures reflected an annual improvement of 13.9% in commercial shipments and decline 25.6% in defense shipments. The company reported commercial deliveries of 806 jets in 2018, up on higher deliveries of 737, 767 and 787 airplanes. The figure came below the company’s delivery guidance of 810 to 815 planes.
In the defense and space business, Boeing’s deliveries were 98 in 2018, down 43.7% from 174 a year ago (read more: Boeing Q4 Commercial Deliveries Up Y/Y, Defense Sinks).
Performance
Over the past five trading sessions, defense biggies have put up a solid show. L3 Technologies gained the most, with its shares rising 4.3% in past five trading days.
The industry's performance over the last six months has however been dismal, except Boeing, shares of which reflected a positive return. This time Textron lost the most, with its share price plummeting 29%, followed by Raytheon.
The following table shows the price movement of major defense players over the past five trading days and during the last six months.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>