Raytheon Technical Services Co., LLC, (“RTSC”) a unit of Raytheon Company (RTN) has received a contract worth $270.5 million from the U.S. Department of Defense (“DoD”). Per the contract, Raytheon will provide the DoD with V-22 software support activity (“SSA”) systems and software engineering along with other services like software testing, avionics integration and testing, and SSA operations.
Contract work will be carried out at RTSC’s Indianapolis facility and is expected to be over by Dec 2019.
RTSC had started its operations by providing aircraft avionics acquisition support and software development. It is now involved in providing technology solutions to defense and commercial customers across the globe. It also provides specialized services in the field of Mission Support.
RTSC has been providing services related to the V-22 to the DoD since its very inception. V-22 is a joint-service, multi-mission aircraft. One of the world’s first tiltrotor jets, it has the capacity of a twin turboprop aircraft and is able to perform vertical take-off and landing.
Raytheon’s diverse range of products along with its focus on technological innovation ensures a regular stream of contracts from the DoD. On Dec 23, 2014, it won a Federal Aviation Administration (“FAA”) contract modification worth $350 million to continue the upgrade of 135 air traffic control centers to the Standard Terminal Automation System (“STARS”). Notably, STARS is a standard air traffic control system used by the FAA and DoD to manage terminal area airspace effectively. (Read More: Raytheon Gets $350M Contract to Upgrade Air Traffic Control)
These contract wins will ensure that Raytheon is in a comfortable position to meet its revised 2014 adjusted earnings projection of $5.91-$6.01 per share. The company had reported adjusted earnings of $5.96 per share in 2013.
Raytheon currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the sector include The Boeing Company (BA), General Dynamics Corp. (GD) and Rockwell Collins Inc. (COL), each holding a Zacks Rank #2 (Buy).
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