Lockheed Martin Corp. (LMT) won a contract, worth $78 million, from the U.S. Army to upgrade the Army Tactical Missile System (“ATACMS”). The modernization will eliminate the risk of unexploded sub-munitions following destruction of a target.
The program's first phase will comprise flight tests following which the upgraded missiles would enter production in 2016. The program will take hardware from early-production ATACMS Block 1 missiles for the purpose of developing it into an enhanced and affordable weapon system.
The ATACMS is the U.S. Army's only tactical long-range precision strike surface-to-surface weapon that has demonstrated high rates of accuracy and reliability. The Block 1 variant carries hundreds of anti-materiel and anti-personnel sub-munitions. Each ATACMS missile is packaged in an assembly pod and is fired from the Multiple Launch Rocket System family of launchers.
Lockheed Martin has produced more than 3,700 of these missiles in the last two decades, with more than 560 of them fired in combat missions.
The company’s diverse product offering guarantees a steady flow of contracts from the Pentagon as well as allied countries. Recently, a $78.2 million contract went to the Lockheed Martin Missiles and Fire Control unit from the U.S. Army for a service life extension program (“SLEP”) for ATACMS. The SLEP is a follow-on order to leverage existing, service life-expired ATACMS Block I missiles into policy compliant area attack munitions. This contract will run through Dec 29, 2018.
The company has consistently beaten earnings estimates for the last four quarters, delivering a positive surprise of 13.24% on an average. On its third-quarter earnings call, the company stated that its 2014 earnings will touch the high end of the previously guided range of $10.85–$11.15 per share. The projected earnings are higher than $10.89 per share earned in 2013.
Lockheed Martin currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the space include Erickson Incorporated (EAC), The Boeing Co. (BA) and General Dynamics (GD), all carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment