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Raytheon (RTN) Wins $402.6M Navy Deal to Produce AMDR Units

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Raytheon Company recently announced that it received a $402.6 million fixed-price-incentive contract for Air and Missile Defense Radar Program (AMDR) low-rate initial production (LRIP). Per the contract, the company will work on three AMDR LRIP units. These units will be deployed on DDG 51 Flight III-class ships.

Work on the radars will be done in Marlborough, MA, and is expected to be completed by March 2023. Raytheon’s Integrated Defense Systems will be entrusted the duty to produce the radars.

Importance of AMDR

Raytheon is developing AN/SPY-6(V), which is the U.S. Navy's next generation integrated air and missile defense radar.

The new radar systems are more efficient and effective than the older AN/SPY-1D(v) radars and provide more protection against air, surface and ballistic missile threats.

Raytheon’s Backlog Rises

Raytheon has a wide range of combat-proven defense products and it continuously working toward developing new technologically sound products.  As a result, the company continues to receive regular orders from both Pentagon and foreign allies. Backlog at the end of 2018 was $42.4 billion up nearly 11% year over year, while booking was up 16.2% to $32.2 billion.

In fact, solid order inflows for its diverse defense products have allowed the company to be a consistent performer over the years. Raytheon’s Patriot missile-defense systems have seen a number of buyers in recent times, including international customers from Europe as well as the Middle East.

Zacks Rank & Stocks to Consider
 
Raytheon currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the same industry worth considering are HEICO Corp. (HEI - Free Report) , Hexcel Corp. (HXL - Free Report) and Triumph Group, Inc. (TGI - Free Report) carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The long-term earnings growth (three to five years) for HEICO, Hexcel and Triumph Group is pegged at 12.11%, 9.98% and 4.80%, respectively. All these stocks outperformed the  industry’s rise of 15% in the past three months.

Price Performance ( Last 3 months)



 

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