The Boeing Co. (BA) has received a $194.8 million modification contract from the U.S. Department of Defense (DoD). Per the contract, Boeing will procure 21 Lot 38 full rate production EA-18G airborne electronic attack kits.
The contracting activity is The Naval Air Systems Command, Patuxent River, MD.
The contract work will be done at various locations, namely, Baltimore, MD (51% of the work will be performed here), Bethpage, NY (33%), St. Louis, MO (12%) and Fort Wayne, IN (4%). Work is expected to be over by 2016 end.
Boeing has witnessed a steady flow of contracts from the DoD. In Oct 2014, Boeing won a $121.2 million DoD contract. Per the contract, Boeing is supposed to provide support to the Apache performance-based logistics of the D-Unique and E-unique supplies. It has also won a whopping $307.5 million contract for the supply of Joint Direct Attack Munition (JDAM) tail-kits.
Apart from Boeing, other defense companies have also landed big deals from the DoD in recent times.
The prime contractor of Pentagon, Lockheed Martin Corp. (LMT) won a $271.8 million contract from the DoD to install 142 aircraft kits for the upgrade of F-16 jets for the government of Taiwan in Nov, 2014. In Oct, 2014, it won a $411.1 million contract to repair the government-owned fleet of F-35 Lightening Joint Strike Fighter jets.
One of the closest peers of Boeing, Northrop Grumman Corporation (NOC) won a $207.3 million modification contract from the DoD for the acquisition of four Ground/Air Task-Oriented Radar (G/ATOR) low-rate initial production systems.
Zacks Rank
Boeing currently holds a Zacks Rank #2 (Buy). Another equally well-placed stock in the same sector includes General Dynamics Corp. (GD).
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