In a befitting end to an eventful 2013, diversified conglomerate General Electric Company (GE - Free Report) received yet another Department of Defense contract on the final day of the year. A total of 9 Pentagon Defense Contracts worth $582 million were awarded to several listed companies, including Lockheed Martin Corporation (LMT - Free Report) , The AES Corporation (AES - Free Report) and General Dynamics Corp. (GD - Free Report) .
GE Aviation, an operating unit of General Electric, won a $65.4 million contract to provide additional technical, engineering and logistical services to the Texas-based Corpus Christi Army Depot for the overhaul and repair of GE T700 engines. These powerful engines are designed for a range of commercial and military applications such as transport, utility and attack, medical evacuation, air rescue, special operations and marine patrol under adverse environmental conditions with minimal maintenance. The contract is scheduled to end in Dec 2014.
Some days back, GE Aviation also won three Department of Defense contracts. These included a $7.5 million cost-plus-fixed-fee delivery order relating to the F404 Engine Component Improvement Program. This contract entails GE Aviation to offer engineering and engine system improvement support for the U.S. Navy and also for the respective governments of Australia, Canada, Finland, South Korea, Kuwait, Malaysia, Spain, Sweden, and Switzerland through Dec 2014.
In addition, General Electric had received a $7.8 million cost-plus-fixed-fee delivery order for the F414 engine. The contract, scheduled to end in Dec 2014, has the U.S. Navy and the government of Australia as its customers. CFM International, a subsidiary of General Electric, had also won an $8.5 million firm-fixed-price contract to supply engine combustion liners to the U.S. Air Force through Apr 2015.
With continuous inflow of contracts, General Electric’s share prices have been on an uptrend and hit a 52-week high of $28.09 on Dec 31, before closing the trading session a notch lower at $28.03 for a healthy year-to-date return of 35.6%. Despite its strong price appreciation, this Zacks Rank #3 (Hold) stock still has enough fundamentals that may further drive the stock upward. The stock is currently trading at a forward P/E of 17.1x and has a long-term earnings growth expectation of 8.9%.
General Electric is one of the largest and the most diversified technology and financial services corporations in the world. With products and services ranging from aircraft engines, power generation, water processing, and security technology to medical imaging, business and consumer financing, media content, and industrial products, the company serves over 100 million customers worldwide. Its segments include Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Home & Business Solutions, and GE Capital.