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Mercury (MRCY) Clinches $165-Million U.S Air Force Contract
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Mercury Systems (MRCY - Free Report) recently secured a $165-million indefinite delivery/indefinite quantity (IDIQ) contract from the United States Air Force (“USAF”). The contract requires Mercury to provide flight data recorders in support of secure mission data system (“SMDS”) of the air services’ F-16 fleet. The order, which has been received in third-quarter fiscal 2022, has a 72-month planned performance and shipment period.
The company intends to deliver improved performance, security and reliability to meet the F-16 fleet’s current and future mission requirements. Its unique flight mission data transfer solution will not only ensure cost optimization for the USAF but also aid in future risk aversion.
According to Mercury, this fixed-price contract is inclusive of an initial $16.4 million order.
Mercury has been steadily winning multiple development contracts from the federal government. Recently, in January, it won a $17 million contract to provide crucial multi-channel radio frequency microelectronics to the United States and its allies for the enhancement of missile capabilities.
Prior to that, in August last year, Mercury received a $17 million order from the U.S. Naval Air Warfare Center’s Aircraft Division. In July 2021, it teamed up with CoreAVI, winner of the Military and Aerospace Electronics 2017 Innovators Platinum Award, to provide its aerospace and defense customers CoreAVI’s safety-certified graphics, video, and GPU compute solutions.
Before that, in June 2021, Mercury achieved a significant milestone with the delivery of more than 1,000 NanoSWITCH rugged network switches to Oshkosh Defense for its Joint Light Tactical Vehicle program.
Mercury's total bookings at the fiscal second quarter-end were $236.9 million, reflecting a book-to-bill ratio of 1.08. The company ended the quarter with a backlog of $953.7 million, up $8.4 million from a year ago. From this backlog, $572.4 million worth of products are expected to be shipped within the next 12 months.
Modernization in radar, EW and C4I is high, providing the company with new opportunities in weapon systems, space, avionics processing, and mission computing, as well as embedded rugged services.
Mercury’s domain expertise in analog and digital integration has helped it build a solid business relationship with defense prime contractors for a long time.
Yet, pandemic-related modernization delays, changes in administration and customer execution issues are likely to continue impacting the company’s organic revenue growth in the near term.
However, low-margin deals are likely to affect Mercury’s profitability despite the steady winning of development contracts from the federal government. Increased investments to expand the business might weigh on the bottom-line results.
The Zacks Consensus Estimate for Apple’s second-quarter fiscal 2022 earnings has been revised upward by 5.1% to $1.43 per share over the past 60 days. For fiscal 2022, earnings estimates have moved north by a penny to $6.16 per share in the past seven days.
Apple’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 20.3%. AAPL stock has appreciated 30.5% in the past year.
The Zacks Consensus Estimate for Axcelis’ first-quarter 2022 earnings has been revised upward by 2 cents to 89 cents per share over the past 30 days. For 2022, earnings estimates have moved north by 12.4% to $3.99 per share in the past 30 days.
Axcelis’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 30.3%. Shares of ACLS have rallied 75.9% in the past year.
The Zacks Consensus Estimate for Analog Devices’ second-quarter fiscal 2022 earnings has been revised upward by 23 cents to $2.08 per share over the past 30 days. For fiscal 2022, earnings estimates have moved north by 79 cents to $8.32 per share in the past 30 days.
Analog Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6%. Shares of ADI have gained 1.8% in the past year.
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Mercury (MRCY) Clinches $165-Million U.S Air Force Contract
Mercury Systems (MRCY - Free Report) recently secured a $165-million indefinite delivery/indefinite quantity (IDIQ) contract from the United States Air Force (“USAF”). The contract requires Mercury to provide flight data recorders in support of secure mission data system (“SMDS”) of the air services’ F-16 fleet. The order, which has been received in third-quarter fiscal 2022, has a 72-month planned performance and shipment period.
The company intends to deliver improved performance, security and reliability to meet the F-16 fleet’s current and future mission requirements. Its unique flight mission data transfer solution will not only ensure cost optimization for the USAF but also aid in future risk aversion.
According to Mercury, this fixed-price contract is inclusive of an initial $16.4 million order.
Mercury Systems Inc Price and Consensus
Mercury Systems Inc price-consensus-chart | Mercury Systems Inc Quote
Back-To-Back Contract Win
Mercury has been steadily winning multiple development contracts from the federal government. Recently, in January, it won a $17 million contract to provide crucial multi-channel radio frequency microelectronics to the United States and its allies for the enhancement of missile capabilities.
Prior to that, in August last year, Mercury received a $17 million order from the U.S. Naval Air Warfare Center’s Aircraft Division. In July 2021, it teamed up with CoreAVI, winner of the Military and Aerospace Electronics 2017 Innovators Platinum Award, to provide its aerospace and defense customers CoreAVI’s safety-certified graphics, video, and GPU compute solutions.
Before that, in June 2021, Mercury achieved a significant milestone with the delivery of more than 1,000 NanoSWITCH rugged network switches to Oshkosh Defense for its Joint Light Tactical Vehicle program.
Mercury's total bookings at the fiscal second quarter-end were $236.9 million, reflecting a book-to-bill ratio of 1.08. The company ended the quarter with a backlog of $953.7 million, up $8.4 million from a year ago. From this backlog, $572.4 million worth of products are expected to be shipped within the next 12 months.
Modernization in radar, EW and C4I is high, providing the company with new opportunities in weapon systems, space, avionics processing, and mission computing, as well as embedded rugged services.
Mercury’s domain expertise in analog and digital integration has helped it build a solid business relationship with defense prime contractors for a long time.
Yet, pandemic-related modernization delays, changes in administration and customer execution issues are likely to continue impacting the company’s organic revenue growth in the near term.
However, low-margin deals are likely to affect Mercury’s profitability despite the steady winning of development contracts from the federal government. Increased investments to expand the business might weigh on the bottom-line results.
Zacks Rank & Key Picks
Mercury currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader computer and technology sector include the iPhone maker Apple (AAPL - Free Report) and Axcelis Technologies (ACLS - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), and Analog Devices (ADI - Free Report) carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Apple’s second-quarter fiscal 2022 earnings has been revised upward by 5.1% to $1.43 per share over the past 60 days. For fiscal 2022, earnings estimates have moved north by a penny to $6.16 per share in the past seven days.
Apple’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 20.3%. AAPL stock has appreciated 30.5% in the past year.
The Zacks Consensus Estimate for Axcelis’ first-quarter 2022 earnings has been revised upward by 2 cents to 89 cents per share over the past 30 days. For 2022, earnings estimates have moved north by 12.4% to $3.99 per share in the past 30 days.
Axcelis’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 30.3%. Shares of ACLS have rallied 75.9% in the past year.
The Zacks Consensus Estimate for Analog Devices’ second-quarter fiscal 2022 earnings has been revised upward by 23 cents to $2.08 per share over the past 30 days. For fiscal 2022, earnings estimates have moved north by 79 cents to $8.32 per share in the past 30 days.
Analog Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6%. Shares of ADI have gained 1.8% in the past year.