We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Boeing-Lockheed JV Unit Secures $208M Contract from USAF
Read MoreHide Full Article
United Launch Services, LLC (“ULS”), a subsidiary of United Launch Alliance (“ULA”) – a Lockheed Martin Corp. (LMT - Free Report) and The Boeing Co. (BA - Free Report) joint venture (JV) – has won a modification contract from the U.S. Air Force (USAF) for launch vehicle production services (LVPS). This comes under the requirements contract terms of the Evolved Expendable Launch Vehicle (EELV) Phase I contract for contract terms of EELV launch capability (ELC).
Contract Details
The contract is valued at $208.1 million and is awarded by the Space and Missile Systems Center, Los Angeles Air Force Base, CA.
Per the modification, ULS will carry out necessary actions for the launch vehicle configuration of an Atlas V 551, an additional solid rocket booster for an Atlas V 551, transportation, and incremental funding for ELC option for fiscal 2017. Moreover, this contract includes a pre-priced contract line item for the Atlas V 551 LV configuration.
Work is scheduled to be complete by Sep 30, 2019 and will be executed in Centennial, CO; Decatur, AL; and Cape Canaveral Air Force Station, FL. The contract will use fiscal 2016 space procurement funds.
A Brief Note on EELV and Atlas V 551
The EELV is a funded USAF launch system program that provides space launch services for national security space (NSS) payloads. The program began in the 1990s with an aim to make government space launches more reasonably priced and dependable. Hence, two launch systems were developed – Delta IV and Atlas V, which were later joined by Falcon 9.
Notably, these launch systems are the primary methods for launching U.S. military satellites. The USAF intends to employ the EELV family of launch vehicles at least by 2030.
The Atlas V 551 launch vehicle is part of the flight proven Atlas V 400/500 family that is operated by ULA. Atlas V rockets began flying in 2002 and have been mostly successful so far. It employs the conventional Atlas V design with a Common Core Booster and a Centaur Upper Stage on top of it. In fact, Atlas V 551 is the largest of the Atlas V Launcher Family flown so far that attributes five Solid Rocket Boosters and a 5.4-meter Payload Fairing.
About ULA
Formed about a decade ago, this 50:50 JV provides the U.S. government missions with affordable, reliable and assured access to space. It has three launch vehicles – Atlas V, Delta IV and Delta II. ULA's launch vehicles have played a major role in the U.S. space ventures, given its highest commitment to crew safety and mission success.
Price Movement
Lockheed Martin’s stock has rallied 13.9% in the last one year, underperforming the Zacks categorized Aerospace/Defense industry’s gain of 22.6%. This could be because of the pressure put by earlier budget-cuts on the top line although the present defense budget lies more in favor of the sector. Budget deficits and political uncertainty make future defense budgets vulnerable to cutbacks.
Meanwhile, Boeing’s stock has increased 41.7% in the last one year, outperforming the Zacks categorized Aerospace/Defense industry’s gain. This could be due to financial flexibility provided by the company’s strong balance sheet and cash flows in matters of incremental dividend, ongoing share repurchases and earnings accretive acquisitions.
On an average, Northrop Grumman has delivered a positive earnings surprise of 25.17% in the last quarter. The company’s 2017 earnings estimates increased 3.9% over the last 30 days.
Leidos Holdings delivered a positive earnings surprise of 12.82% in the last quarter. The company’s 2017 earnings estimates increased 0.6% in the last seven days.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
Image: Bigstock
Boeing-Lockheed JV Unit Secures $208M Contract from USAF
United Launch Services, LLC (“ULS”), a subsidiary of United Launch Alliance (“ULA”) – a Lockheed Martin Corp. (LMT - Free Report) and The Boeing Co. (BA - Free Report) joint venture (JV) – has won a modification contract from the U.S. Air Force (USAF) for launch vehicle production services (LVPS). This comes under the requirements contract terms of the Evolved Expendable Launch Vehicle (EELV) Phase I contract for contract terms of EELV launch capability (ELC).
Contract Details
The contract is valued at $208.1 million and is awarded by the Space and Missile Systems Center, Los Angeles Air Force Base, CA.
Per the modification, ULS will carry out necessary actions for the launch vehicle configuration of an Atlas V 551, an additional solid rocket booster for an Atlas V 551, transportation, and incremental funding for ELC option for fiscal 2017. Moreover, this contract includes a pre-priced contract line item for the Atlas V 551 LV configuration.
Work is scheduled to be complete by Sep 30, 2019 and will be executed in Centennial, CO; Decatur, AL; and Cape Canaveral Air Force Station, FL. The contract will use fiscal 2016 space procurement funds.
A Brief Note on EELV and Atlas V 551
The EELV is a funded USAF launch system program that provides space launch services for national security space (NSS) payloads. The program began in the 1990s with an aim to make government space launches more reasonably priced and dependable. Hence, two launch systems were developed – Delta IV and Atlas V, which were later joined by Falcon 9.
Notably, these launch systems are the primary methods for launching U.S. military satellites. The USAF intends to employ the EELV family of launch vehicles at least by 2030.
The Atlas V 551 launch vehicle is part of the flight proven Atlas V 400/500 family that is operated by ULA. Atlas V rockets began flying in 2002 and have been mostly successful so far. It employs the conventional Atlas V design with a Common Core Booster and a Centaur Upper Stage on top of it. In fact, Atlas V 551 is the largest of the Atlas V Launcher Family flown so far that attributes five Solid Rocket Boosters and a 5.4-meter Payload Fairing.
About ULA
Formed about a decade ago, this 50:50 JV provides the U.S. government missions with affordable, reliable and assured access to space. It has three launch vehicles – Atlas V, Delta IV and Delta II. ULA's launch vehicles have played a major role in the U.S. space ventures, given its highest commitment to crew safety and mission success.
Price Movement
Lockheed Martin’s stock has rallied 13.9% in the last one year, underperforming the Zacks categorized Aerospace/Defense industry’s gain of 22.6%. This could be because of the pressure put by earlier budget-cuts on the top line although the present defense budget lies more in favor of the sector. Budget deficits and political uncertainty make future defense budgets vulnerable to cutbacks.
Meanwhile, Boeing’s stock has increased 41.7% in the last one year, outperforming the Zacks categorized Aerospace/Defense industry’s gain. This could be due to financial flexibility provided by the company’s strong balance sheet and cash flows in matters of incremental dividend, ongoing share repurchases and earnings accretive acquisitions.
Zacks Rank & Key Picks
Both Lockheed Martin and Boeing currently carry a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the aerospace and defense space are Northrop Grumman Corp. (NOC - Free Report) and Leidos Holdings, Inc. (LDOS - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On an average, Northrop Grumman has delivered a positive earnings surprise of 25.17% in the last quarter. The company’s 2017 earnings estimates increased 3.9% over the last 30 days.
Leidos Holdings delivered a positive earnings surprise of 12.82% in the last quarter. The company’s 2017 earnings estimates increased 0.6% in the last seven days.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>