A Lockheed Martin Corporation (LMT - Free Report) led team received a contract worth $758 million from the U.S. Navy to provide combat and sonar systems to submarines. Lockheed will take inspiration from commercial hardware and software to develop the required systems for the submarines. The other players of the team are DRS Technologies and Progeny Systems.
Through the Technology Insertion Hardware program of the Navy, Lockheed is entrusted with the designing, developing and producing hardware for the next two submarine technology insertions. The insertion of technology are planned for Seawolf, SSGN, 688/688i, Virginia Class, and future submarine systems and platforms.
The U.S. Navy will also share this technology with the Royal Australian Navy with similar technology insertions for the latter’s Collins Class submarines through the Foreign Military Sales program.
Lockheed has expertise and acumen to harness the technology that works for commercial equipment and make them fit for the harsh military environment. The defense pro has been efficiently serving the U.S. Navy for nearly one and a half decade and has saved around $1.5 billion for the Navy. In that period Lockheed worked on seven similar technology insertion works and delivered 8,000 workstations and servers on schedule to the U.S. Navy.
Lockheed's Electronic Systems segment, which designs, develops and integrates hardware and software solutions for advanced sensors, decision systems and weapons for air-, land-, and sea-based platforms works, will work on the new hardware technology. In the most recent quarter, the segment generated 6% higher revenue than the comparable quarter last year buoyed by expanded volume on various radar system programs, air defense programs, and volume on logistics activities.
During the first quarter earnings call Lockheed provided earnings estimates for 2011 in the range of $6.95 to $7.25 per share. The Zacks Consensus Estimates for second-quarter 2011, fiscal year 2011 and fiscal year 2012 are, respectively, $1.92 per share, $7.28 per share and $8.73 per share.
Lockheed currently retains a Zacks #3 Rank (short term Hold). The company primarily competes with The Boeing Co. (BA - Free Report) , Northrop Grumman Corporation (NOC - Free Report) and Raytheon Co. (RTN - Free Report) , all of them holding a Zack # 3 Rank (short-term Hold).
Based in Bethesda, Maryland, Lockheed Martin is a global security company that is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.