Lockheed Martin Corporation ([stock]LMT[/stock]) announced that the U.S. Missile Defense Agency has awarded it a $ 43.3 million contract for concept definition and program planning for the Standard Missile-3 Block IIB (SM-3 IIB). The Standard Missile 3 is a ship-based missile system used by the US Navy to intercept aircraft, ships, ballistic and cruise missiles as a part of the Aegis Ballistic Missile Defense System. The missile will provide early intercept capability against intermediate- and long-range ballistic missile threats.
The Aegis Ballistic Missile Defense System program is managed by the U.S. Department of Defense Missile Defense Agency. The program focuses on providing a defense against ballistic missiles. It is part of the U.S. national missile defense strategy. Lockheed Martin managed Aegis Ballistic Missile Defense System is an integrated naval weapons system that is designed to intercept ballistic missiles.
Lockheed Martin will perform the contract at Sunnyvale, California, Huntsville, Alabama, Moorestown, New Jersey, and Grand Prairie, Texas.
Lockheed Martin is the largest U.S. defense contractor with a platform-centric focus that guarantees a steady inflow of orders with a leveraged presence in the Army, Air Force, Navy and IT. Also, the company’s focus on debt repayment, an ongoing share repurchase program and an increasing dividend will continue to shore up shareholder return.
However, we believe that budget deficits and political uncertainty make future defense budgets vulnerable to cutbacks. The company presently retains a short-term Zacks #3 Rank (Hold) that corresponds to our long-term Neutral recommendation on the stock.
Based in Bethesda, Maryland, Lockheed Martin is a global security company that designs and produces ballistic missiles, interceptors, target missiles and reentry systems with unmatched reliability.
Lockheed Martin's focus on operational excellence helps produce affordable high-quality systems and services. It leads the industry in performance and domain expertise in strategic missile and missile defense systems. The company mainly competes with Northrop Grumman Corporation ([stock]BA[/stock]).
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