Lockheed Awarded GSM-O Contract

Lockheed Martin Corporation ( LMT - Analyst Report ) has been selected to support the Defense Information Systems Agency (“DISA”) under a seven-year Global Systems Management Operations (“GSM-O”) contract. This contract award, worth $4.6 billion, has a customary three-year base period and two two-year extension options.

Per the agreement, Lockheed Martin will supervise the transformation of the Department of Defense’s (“DoD”) global data network. This will significantly improve the speed and efficacy of information exchange between U.S. warfighters and their allies across the world. The upgraded network will support new technologies and communication capabilities that directly impact the chances of a warfighter’s success in critical missions.

The DISA offers global information and technological support through an online platform to the armed forces and the DoD. Its main aim is to supply secure and reliable communications networks, computers, databases and software to the DoD. DISA enables the U.S. military forces to stay connected irrespective of their location, gathers intelligence for crucial missions and receives accurate and secure information on potential threats.

The contract offers sophisticated operations, and engineering services along with required equipments and amenities to support the lifecycle management of the network. Apart from Lockheed Martin, other members in DISA contracts include AT&T, Inc. ( T - Analyst Report ) , BAE Systems plc and other specialized organizations.

Lockheed Martin is well poised to successfully deliver information technology management services, infrastructure and applications, and provide maximum benefit to the U.S. and several other international defense establishments.

The company expects full year 2012 earnings to be in the range of $7.70 – $7.90 per share, on revenues in the range of $45 billion–$46 billion. As per the Zacks Consensus Estimate, the company’s second quarter and full year 2012 earnings are expected to be $1.92 and $7.90 per share, respectively.

As the world’s largest standalone defense contractor, Lockheed Martin has a strong contract pipeline. Post first quarter 2012, the company has signed contracts worth $25.8 billion with different divisions of the U.S. military and international defense establishments.

We expect Lockheed Martin to report a stable performance in the forthcoming quarters owing to its leveraged presence in the U.S. Army, Air Force, Navy and the armed forces of its international allies.

Lockheed Martin Corporation retains a Zacks #3 Rank, which translates into a short-term Hold rating.

Bethesda, Maryland-based Lockheed Martin Corporation is a global security and aerospace company that is principally engaged in the research, design, development, manufacture, integration and maintenance of advanced technology systems, products and services.