We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Lockheed Martin Wins F-35 Deal to Aid Israel Defense Force
Read MoreHide Full Article
Lockheed Martin Corp.’s (LMT - Free Report) Aeronautics segment recently secured a modification contract for F-35 jet to support the Israel defense force. Work related to this deal is expected to be over by December 2021.
Details of the Deal
Valued at $148 million, the contract was awarded by the Naval Air Systems Command, Patuxent River, MD. Per the terms of the deal, Lockheed Martin will procure Israel-unique weapons certification, modification kits, and electronic warfare analysis in support of the F-35 Lightning II Israel system design and development. This will offer 3F+ fleet to the government of Israel under the Foreign Military Sales (FMS) program.
Majority of the work will be carried out in Orlando, FL; El Segundo, CA; Fort Worth, TX and Nashua, NH. FMS funds will be utilized to finance the task.
A Brief Note on F-35
Lockheed Martin’s F-35 Lightning II is a 5th Generation, single-seat, single-engine fighter jet. It offers a combination of advanced stealth as well as fighter speed and agility, fully fused sensor information, network-enabled operations and advanced sustainment.
With Lockheed Martin being the primary partner, the F-35 program has been supported by an international team of leading aerospace majors like Northrop Grumman Corp. (NOC - Free Report) , BAE Systems plc (BAESY - Free Report) and Pratt & Whitney — an unit of United Technologies .
Our View
Thanks to its diverse state-of-the art defense equipment, Lockheed Martin remains the largest U.S. defense contractor. Notably, the F-35 program continues to be a primary growth driver for the company. Evidently, Lockheed Martin witnessed 12% top-line growth in the fourth quarter for its Aeronautics segment, primarily driven by the F-35 program. The company delivered 66 F-35 aircraft that represents an annual growth of 44% in 2017. Management expects this momentum to continue and the company to deliver approximately 90 jets in 2018, reflecting year-over-year growth of 35%. Over the next few years, Lockheed Martin expects to achieve full-rate production for F-35.
In terms of delivery, till date the company has dispatched more than 265 F-35 jets to the United States and international customers. Production of the F-35 aircraft is expected to continue for many years given the U.S. government's current inventory target of 2,443 aircraft for the Air Force, Marine Corps and Navy.
Apart from its strong demand scenario in the domestic market, the F-35 program enjoys a solid forte in the international front as well. Evidently, Norway received its first three conventional, take-off and landing F-35As, during the fourth quarter of 2017. Moreover in 2017, seven of Lockheed Martin’s 11 international customers accepted the F-35 deliveries. This shows the notable demand F-35 enjoys in the international market as well.
According to a report by Reuters, Germany’s 85 Tornado jets will go out of service by 2030. In relation to this the country has identified F-35 along with Boeing’s F-15 and F/A-18E/F jets as their next best alternatives. If chosen as the ultimate jet for the country, it goes without saying that F-35 program will witness a major surge in its growth.
Currently, the company expects to generate revenues in the range of $50.0-$51.5 billion in 2018. We believe winning such orders, like the latest one, will entitle Lockheed Martin to achieve these targets.
Price Movement
Shares of Lockheed Martin have moved up 38.1% over a year, underperforming the 57.2% rally of the industry it belongs to. This could be because the earlier budget cuts have put pressure on the company’s top-line growth.
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Lockheed Martin Wins F-35 Deal to Aid Israel Defense Force
Lockheed Martin Corp.’s (LMT - Free Report) Aeronautics segment recently secured a modification contract for F-35 jet to support the Israel defense force. Work related to this deal is expected to be over by December 2021.
Details of the Deal
Valued at $148 million, the contract was awarded by the Naval Air Systems Command, Patuxent River, MD. Per the terms of the deal, Lockheed Martin will procure Israel-unique weapons certification, modification kits, and electronic warfare analysis in support of the F-35 Lightning II Israel system design and development. This will offer 3F+ fleet to the government of Israel under the Foreign Military Sales (FMS) program.
Majority of the work will be carried out in Orlando, FL; El Segundo, CA; Fort Worth, TX and Nashua, NH. FMS funds will be utilized to finance the task.
A Brief Note on F-35
Lockheed Martin’s F-35 Lightning II is a 5th Generation, single-seat, single-engine fighter jet. It offers a combination of advanced stealth as well as fighter speed and agility, fully fused sensor information, network-enabled operations and advanced sustainment.
With Lockheed Martin being the primary partner, the F-35 program has been supported by an international team of leading aerospace majors like Northrop Grumman Corp. (NOC - Free Report) , BAE Systems plc (BAESY - Free Report) and Pratt & Whitney — an unit of United Technologies .
Our View
Thanks to its diverse state-of-the art defense equipment, Lockheed Martin remains the largest U.S. defense contractor. Notably, the F-35 program continues to be a primary growth driver for the company. Evidently, Lockheed Martin witnessed 12% top-line growth in the fourth quarter for its Aeronautics segment, primarily driven by the F-35 program. The company delivered 66 F-35 aircraft that represents an annual growth of 44% in 2017. Management expects this momentum to continue and the company to deliver approximately 90 jets in 2018, reflecting year-over-year growth of 35%. Over the next few years, Lockheed Martin expects to achieve full-rate production for F-35.
In terms of delivery, till date the company has dispatched more than 265 F-35 jets to the United States and international customers. Production of the F-35 aircraft is expected to continue for many years given the U.S. government's current inventory target of 2,443 aircraft for the Air Force, Marine Corps and Navy.
Apart from its strong demand scenario in the domestic market, the F-35 program enjoys a solid forte in the international front as well. Evidently, Norway received its first three conventional, take-off and landing F-35As, during the fourth quarter of 2017. Moreover in 2017, seven of Lockheed Martin’s 11 international customers accepted the F-35 deliveries. This shows the notable demand F-35 enjoys in the international market as well.
According to a report by Reuters, Germany’s 85 Tornado jets will go out of service by 2030. In relation to this the country has identified F-35 along with Boeing’s F-15 and F/A-18E/F jets as their next best alternatives. If chosen as the ultimate jet for the country, it goes without saying that F-35 program will witness a major surge in its growth.
Currently, the company expects to generate revenues in the range of $50.0-$51.5 billion in 2018. We believe winning such orders, like the latest one, will entitle Lockheed Martin to achieve these targets.
Price Movement
Shares of Lockheed Martin have moved up 38.1% over a year, underperforming the 57.2% rally of the industry it belongs to. This could be because the earlier budget cuts have put pressure on the company’s top-line growth.
Zacks Rank
Lockheed Martin sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>