Pentagon’s prime contractor Lockheed Martin Corp. LMT nabbed three major defense deals, apart from a small one, from yesterday’s funding list. The contracts are valued at $378 million in total.
The contract with the highest value, worth $130.6 million, was received from the U.S. Army for the AH-64 modernized day sensor assembly. This is a foreign military sales (”FMS”) contract for Qatar and will be carried out at Orlando, FL with an estimated completion date of Mar 1, 2019.
The second one involves Lockheed Martin’s Mission Systems and Training to manufacture and deliver 10 MH-60R Mission Avionics Systems and Common Cockpits for the government of Saudi Arabia under the FMS program. This is a modification contact valued at $117.2 million and covers recurring engineering and program support required to execute the production and delivery of the mission avionics and common cockpits. The contract is slated for completion by Apr 2019.
The other major contract entitled Lockheed Martin is for non-recurring engineering to support the MH-60R aircraft. The contract, worth $110.2 million, is for the development, test and qualification of the MH-60R Mission Avionics Systems and Common Cockpits configuration for production for the Government of Saudi Arabia under the FMS program. The contract will run through Jun 2019.
Apart from these significant orders, the defense behemoth won a $20 million modification contract from the U.S. Navy for hardware and labor for configuration of the Automatic Logistics Information System Operational Representative Environment in support of the F-35 Lightning II Joint Strike Fighter. The contract is expected to be completed by Aug 2017.
In a world fraught with geopolitical tension, several nations have ramped up their defense capabilities. Increasing threats and the growing need to safeguard the interest of the nations and their people have pushed up demand for U.S. weapons. This is in turn benefiting the U.S. defense manufacturers. And Lockheed Martin is bound to enjoy the benefit given its leveraged presence in the Army, Air Force, Navy and IT programs.
Zacks Rank
Lockheed Martin currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the aerospace and defense sector include Leidos Holdings, Inc. LDOS, General Dynamics Corporation GD and Huntington Ingalls Industries, Inc. HII. While Leidos sports a Zacks Rank #1 (Strong Buy), both General Dynamics and Huntington Ingalls hold a Zacks Rank #2 (Buy).
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