The Boeing Co. (BA) booked a couple of contracts, worth a cumulative $91.6 million, from the Pentagon on Dec 7, 2014. Though these contracts are not much to speak of, small-ticket deals still offer some respite from severe budget austerities.
A $78.7 million delivery order came from the U.S. Air Force on a previously awarded contract for C-32 and C-40 aircraft fleet support. Work on this contract is expected to be completed by Dec 31, 2015. The Air Force Life Cycle Management Center, Tinker Air Force Base, Oklahoma, is the contracting activity.
Under the second contract, Boeing is to exercise the option on a previously awarded contract to continue logistics support, special studies, and local area network sustainment. Boeing is also entitled to carry on maintenance and operations services for the development and delivery of logistics infrastructure for the Space-Based Space Surveillance Block 10 System. This is a modification contract valued at $12.9 million. The contract will run through Jun 20, 2015.
Besides its commercial airplane manufacturing business, Boeing is also one of the major players in the defense business. Boeing’s defense business stands out among its peers by virtue of its broadly diversified programs, strong order bookings and order backlog.
This defense contractor has lately won a number of contracts from the U.S. Department of Defense (“DoD”), which includes both big and small ticket items. Recently, it received a $59 million modification contract from the DoD. Per the contract, Boeing will continue to provide sustainment, programmed depot maintenance, modification and other related support services for the E-4B platform.
Boeing also won a modification contract worth $82.6 million on Nov 24 for the Joint Direct Attack Munition tail kits. It has also nabbed a $194.8 million modification contract to procure 21 units of Lot 38 full-rate production EA-18G airborne electronic attack kits (read more: Boeing Wins Modification Contract from DoD worth $194.8M).
For 2014, the company expects its defense revenue to be in the range of $30 billion to $31 billion with an operating margin of approximately 9.5%.
Zacks Rank
Boeing carries a Zacks Rank #2 (Buy). Other well-placed stocks in the same sector include Rockwell Collins Inc. (COL), General Dynamics Corp. (GD) and Engility Holdings, Inc. (EGL), all with a Zacks Rank #2 (Buy).
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