L-3 National Security Solutions Inc., a business unit of L-3 Communications Holdings LLL, has won a fixed-price, indefinite-delivery/indefinite-quantity (“IDIQ”) Foreign Military Sales (FMS) contract worth $95 million on Jun 24, 2015.
As per the contract, L-3 National Security Solutions will support air operations center training for Royal Saudi Air Force personnel in Saudi Arabia. L-3 National Security Solutions will complete the work under the contract by Jun 23, 2020.
However, following the news, shares of L-3 Communications fell 1.3% till yesterday’s closing session due to broader market fundamentals.
L-3 Communications focuses on expanding its international footprint considering the budget uncertainties at home. The company’s international and commercial sales represented about 30% of its consolidated net sales in the first quarter (up from 29% in the first quarter of 2014).
Moreover, L-3 Communications has expanded its international sales by 35% since 2011 and expects its international and commercial sales to make up for 32% of the consolidated 2015 sales.
In March this year, L-3 National Security Solutions had also won a $117 million contract for providing technical support to the U.S. Army’s Medical Communications for Combat Casualty Care (MC4) program.
The MC4 program provides medical treatment to soldiers in the battlefield. It helps medical personnel gain fast and accurate access to patient history. The program also facilitates patient tracking, blood management, medical reporting and medical logistical support.
Recently, aviation services provider Erickson Incorporated EAC announced that it has entered into a contract with Chilcott, Inc. to provide flight currency training for the Fuerza Aerea Uruguaya (FAU or Uruguayan Air Force) helicopter pilots. Per the agreement, Erickson pilot instructors will train Uruguayan Air Force pilots and prepare them to work on the United Nations Stabilization Mission in the Democratic Republic of the Congo (MONUSCO).
Currently, L-3 Communications carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader aerospace sector include Boeing Co. BA and Northrop Grumman Corporation NOC. Both of them hold 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 >>
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
Be the first to comment