Raytheon Co.’s Integrated Defense Systems division has won a contract from the U.S. Navy for the production of Aegis Weapon System AN/SPY-1D(V) Radar Transmitter Group, Missile Fire Control System MK 99 equipment, and associated engineering services. The contract is valued at $365.8 million.
This contract has options which, if exercised, will bring the total contract value to $423 million. The contract falls under the Foreign Military Sales program that includes purchases for South Korea and Japan apart from purchases for the U.S. Navy. Work under this contract is expected to be completed by Oct 2022.
The SPY-1D(V) Transmitter and the MK 99 Fire Control System are an essential part of the Navy's Aegis missile defense system. Over the past 35 years, these systems have been in continuous production and are in use aboard 108 warships worldwide, comprising 17 ships sailed by foreign nations.
The SPY-1D(V) is a high-powered radar transmitter that supports search, track and missile guidance functions, while the MK99 system communicates with the mission control station to identify and illuminate air targets.
Raytheon is one of the best-positioned, large-cap defense players and will continue to gain traction on the back of its strong fundamentals, focus on technological innovation and improvement of its product offering, which will ensure more contract wins and an enhanced growth trajectory.
The company has been enjoying a steady stream of contracts from several government establishments. As a result, total backlog at the end of the first quarter of 2016 was $34.8 billion, up from $32.5 billion at the end of the year-ago quarter.
Raytheon currently has a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in the same space include BAE Systems plc (BAESY - Free Report) , CAE Inc. (CAE - Free Report) and Esterline Technologies Corp. , each carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Raytheon Co.’s Integrated Defense Systems division has won a contract from the U.S. Navy for the production of Aegis Weapon System AN/SPY-1D(V) Radar Transmitter Group, Missile Fire Control System MK 99 equipment, and associated engineering services. The contract is valued at $365.8 million.
This contract has options which, if exercised, will bring the total contract value to $423 million. The contract falls under the Foreign Military Sales program that includes purchases for South Korea and Japan apart from purchases for the U.S. Navy. Work under this contract is expected to be completed by Oct 2022.
The SPY-1D(V) Transmitter and the MK 99 Fire Control System are an essential part of the Navy's Aegis missile defense system. Over the past 35 years, these systems have been in continuous production and are in use aboard 108 warships worldwide, comprising 17 ships sailed by foreign nations.
The SPY-1D(V) is a high-powered radar transmitter that supports search, track and missile guidance functions, while the MK99 system communicates with the mission control station to identify and illuminate air targets.
Raytheon is one of the best-positioned, large-cap defense players and will continue to gain traction on the back of its strong fundamentals, focus on technological innovation and improvement of its product offering, which will ensure more contract wins and an enhanced growth trajectory.
The company has been enjoying a steady stream of contracts from several government establishments. As a result, total backlog at the end of the first quarter of 2016 was $34.8 billion, up from $32.5 billion at the end of the year-ago quarter.
Raytheon currently has a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in the same space include BAE Systems plc (BAESY - Free Report) , CAE Inc. (CAE - Free Report) and Esterline Technologies Corp. , each carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on BAESY - FREE
Get the latest research report on CAE - FREE