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BAE Systems (BAESY) Wins Deal for Amphibious Combat Vehicles
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BAE Systems plc’s (BAESY - Free Report) business unit, BAE Systems Land & Armaments L.P., recently clinched a modification contract involving the Amphibious Combat Vehicles (ACV). The contract is projected to be complete in March 2024.
Details of the Deal
Valued at $173.6 million, the deal has been awarded by the Marine Corps Systems Command, Quantico, VA. Per the terms, BAE Systems will manufacture 36 full-rate ACVs. The contract also highlights fielding and support costs activities related to the ACV.
The majority of the work involved in the deal will be carried out in York, PA.
Importance of ACV
BAE Systems designs, manufactures, sustains and supports tracked and wheeled ACVs for armed forces globally. Its ACV is an adaptable amphibious platform designed from the ground up to fulfill the complex mission objective of deploying Marines from ship to shore.
It represents a unique mix of true open-ocean amphibious capability, land mobility, survivability, payload and also exhibits the tremendous growth potential to accommodate the evolving operational needs of the United States Marine Corps.
BAE Systems’ ACV boasts features that are most suitable for any kind of expeditionary mission. Hence, due to such remarkable features, BAESY is likely to win more orders involving the ACV like the latest one. This, in turn, will boost its revenues from the ACV line of business.
BAE Systems’Growth Prospects
The increased defense spending by nations worldwide in a bid to modernize and upgrade the defense structure has propelled demand for arms and ammunitions. In this regard, ACV being an armed and armored military vehicle that exhibits technologically advanced capabilities, which encourage a switch from water to ground operations without any tactical pause for the army, may witness a rise in demand.
Per the report from Research and Markets, the military amphibious vehicle market is projected to witness a CAGR of 6% during the 2022-2027 period. Such bright prospects highlight immense growth potential for BAE Systems to prosper on the growing demand and bolster its overall performance.
Price Movement
In the past year, shares of BAE Systems have rallied 53.7% compared with the industry’s growth of 14.9%.
Huntington Ingalls reported fourth-quarter 2021 adjusted earnings of $2.84 per share, which declined 34.7% from $4.35 reported in the prior-year quarter. Total revenues came in at $2,677 million, lagging the Zacks Consensus Estimate of $2,738.4 million by 2.2%.
The Zacks Consensus Estimate for Huntington Ingalls’ fiscal 2022 earnings indicates an upward revision of 4.3% in the past 60 days. HII shares have rallied 4.4% in the past six months.
The Zacks Consensus Estimate for Spire’s 2022 earnings implies growth of 47.3% from the prior-year figure. The Zacks Consensus Estimate for Spire’s 2022 sales indicates growth of 101.3% from the prior-year figure.
The Zacks Consensus Estimate for SPIR’s 2023 earnings indicates growth of 4.1% from the 2022 estimated figure.
The Zacks Consensus Estimate for Airbus’ fiscal 2022 earnings indicates an upward revision of 2.7% in the past 60 days. Airbus’ 2023 estimated earnings imply an improvement of 9.5% in the past 60 days.
Also, the Zacks Consensus Estimate for EADSY’s 2022 sales is expected to deliver growth of 9.7% from the prior-year reported figure. Airbus shares have returned 4% to its investors in the past year.
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BAE Systems (BAESY) Wins Deal for Amphibious Combat Vehicles
BAE Systems plc’s (BAESY - Free Report) business unit, BAE Systems Land & Armaments L.P., recently clinched a modification contract involving the Amphibious Combat Vehicles (ACV). The contract is projected to be complete in March 2024.
Details of the Deal
Valued at $173.6 million, the deal has been awarded by the Marine Corps Systems Command, Quantico, VA. Per the terms, BAE Systems will manufacture 36 full-rate ACVs. The contract also highlights fielding and support costs activities related to the ACV.
The majority of the work involved in the deal will be carried out in York, PA.
Importance of ACV
BAE Systems designs, manufactures, sustains and supports tracked and wheeled ACVs for armed forces globally. Its ACV is an adaptable amphibious platform designed from the ground up to fulfill the complex mission objective of deploying Marines from ship to shore.
It represents a unique mix of true open-ocean amphibious capability, land mobility, survivability, payload and also exhibits the tremendous growth potential to accommodate the evolving operational needs of the United States Marine Corps.
BAE Systems’ ACV boasts features that are most suitable for any kind of expeditionary mission. Hence, due to such remarkable features, BAESY is likely to win more orders involving the ACV like the latest one. This, in turn, will boost its revenues from the ACV line of business.
BAE Systems’Growth Prospects
The increased defense spending by nations worldwide in a bid to modernize and upgrade the defense structure has propelled demand for arms and ammunitions. In this regard, ACV being an armed and armored military vehicle that exhibits technologically advanced capabilities, which encourage a switch from water to ground operations without any tactical pause for the army, may witness a rise in demand.
Per the report from Research and Markets, the military amphibious vehicle market is projected to witness a CAGR of 6% during the 2022-2027 period. Such bright prospects highlight immense growth potential for BAE Systems to prosper on the growing demand and bolster its overall performance.
Price Movement
In the past year, shares of BAE Systems have rallied 53.7% compared with the industry’s growth of 14.9%.
Image Source: Zacks Investment Research
Zacks Rank
BAE Systems currently carries a Zacks Rank #2 (Buy). Some other similar-ranked stocks from the same sectorare Huntington Ingalls (HII - Free Report) , Spire Global, Inc. (SPIR - Free Report) and Airbus Group (EADSY - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Huntington Ingalls reported fourth-quarter 2021 adjusted earnings of $2.84 per share, which declined 34.7% from $4.35 reported in the prior-year quarter. Total revenues came in at $2,677 million, lagging the Zacks Consensus Estimate of $2,738.4 million by 2.2%.
The Zacks Consensus Estimate for Huntington Ingalls’ fiscal 2022 earnings indicates an upward revision of 4.3% in the past 60 days. HII shares have rallied 4.4% in the past six months.
The Zacks Consensus Estimate for Spire’s 2022 earnings implies growth of 47.3% from the prior-year figure. The Zacks Consensus Estimate for Spire’s 2022 sales indicates growth of 101.3% from the prior-year figure.
The Zacks Consensus Estimate for SPIR’s 2023 earnings indicates growth of 4.1% from the 2022 estimated figure.
The Zacks Consensus Estimate for Airbus’ fiscal 2022 earnings indicates an upward revision of 2.7% in the past 60 days. Airbus’ 2023 estimated earnings imply an improvement of 9.5% in the past 60 days.
Also, the Zacks Consensus Estimate for EADSY’s 2022 sales is expected to deliver growth of 9.7% from the prior-year reported figure. Airbus shares have returned 4% to its investors in the past year.