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 (LMT) Wins Deal to Aid H-60 & H-53 Series Jets
Read MoreHide Full Article
Lockheed Martin Corp.’s (LMT - Free Report) business unit, Sikorsky Aircraft, recently clinched a contract to support the H-60 and H-53 series helicopters. The award has been provided by the Commander, Fleet Readiness Centers, Patuxent River, MD.
Details of the Deal
Valued at $26.1 million, this contract is projected to be completed by September 2027. Per the terms of the deal, Sikorsky will offer engineering technical field services to aid the installation, operation and maintenance of the H-60 and H-53 series helicopters.
The majority of the work will be carried out in Okinawa, Japan; North Hanover, NJ; Atsugi, Japan; Rota, Spain; San Diego, California and Apra Harbor, Guam.
Benefits of the Contract
Countries across the globe have been reinforcing their military resources due to intense geopolitical tensions and amplified terrorist threats.
Among other combat arsenals and weaponries, military helicopters have also been gaining importance owing to advancements and integration of new tactical, logistical features. This has provided ample opportunities for Lockheed Martin to win production and modification contracts for helicopters in recent times. The latest contract is a bright example of that.
Such contract wins are likely to drive revenues from the Rotary and Mission Systems business segment, which comprises the Sikorsky helicopters.
Prospects
The United States, the largest exporter of military weaponries worldwide, continues to strengthen its military resources. This is quite evident from the fiscal 2023 budget proposal worth $773 billion put forward by the Biden administration for the Department of Defense, with a $56.5 billion planned investment in combat aircraft. The defense budget request reflects a 4.1% increase from the fiscal 2022 enacted amount.
Such solid budgetary provisions should benefit Lockheed along with other defense manufacturers like Northrop Grumman (NOC - Free Report) , Boeing (BA - Free Report) and Textron (TXT - Free Report) , which also have expertise in manufacturing military aircraft.
Since its inception, Northrop Grumman has been a pioneer in the development of manned aircraft for combat. Northrop Grumman also has a tradition of providing technological leadership in all aspects of military aviation and aircraft, such as manned, unmanned, targeting, surveillance, and aircraft self-protection systems that enable warfighters to accomplish missions anytime, anywhere and under any conditions.
Northrop Grumman boasts a long-term earnings growth rate of 2.2%. The stock has gained 38.7% in the past year.
Boeing’s Defense, Space & Security segment’s primary products include fixed-wing military aircraft, F/A-18E/F Super Hornet, F-15 programs, P-8 programs, KC-46A Tanker, and T-7A Red Hawk. This segment also produces rotorcraft and rotary-wing programs such as CH-47 Chinook, AH-64 Apache and V-22 Osprey.
BA stock boasts a long-term earnings growth rate of 4%. The Zacks Consensus Estimate for 2022 earnings implies growth of 14.8% from the 2021 reported figure.
Textron’s business unit, Textron Aviation Defense, designs, builds and supports versatile and globally known military aircraft preferred for training and attack missions. Some of Textron’s renowned products include Beechcraft T-6C trainer and AT-6 Wolverine.
Textron boasts a long-term earnings growth rate of 12.5%. The Zacks Consensus Estimate for TXT’s 2022 sales indicates a 6% improvement from the 2021 reported figure.
Price Movement
In the past year, shares of Lockheed have gained 21.4% against the industry’s 32.6% decline.
Image: Bigstock
Lockheed (LMT) Wins Deal to Aid H-60 & H-53 Series Jets
Lockheed Martin Corp.’s (LMT - Free Report) business unit, Sikorsky Aircraft, recently clinched a contract to support the H-60 and H-53 series helicopters. The award has been provided by the Commander, Fleet Readiness Centers, Patuxent River, MD.
Details of the Deal
Valued at $26.1 million, this contract is projected to be completed by September 2027. Per the terms of the deal, Sikorsky will offer engineering technical field services to aid the installation, operation and maintenance of the H-60 and H-53 series helicopters.
The majority of the work will be carried out in Okinawa, Japan; North Hanover, NJ; Atsugi, Japan; Rota, Spain; San Diego, California and Apra Harbor, Guam.
Benefits of the Contract
Countries across the globe have been reinforcing their military resources due to intense geopolitical tensions and amplified terrorist threats.
Among other combat arsenals and weaponries, military helicopters have also been gaining importance owing to advancements and integration of new tactical, logistical features. This has provided ample opportunities for Lockheed Martin to win production and modification contracts for helicopters in recent times. The latest contract is a bright example of that.
Such contract wins are likely to drive revenues from the Rotary and Mission Systems business segment, which comprises the Sikorsky helicopters.
Prospects
The United States, the largest exporter of military weaponries worldwide, continues to strengthen its military resources. This is quite evident from the fiscal 2023 budget proposal worth $773 billion put forward by the Biden administration for the Department of Defense, with a $56.5 billion planned investment in combat aircraft. The defense budget request reflects a 4.1% increase from the fiscal 2022 enacted amount.
Such solid budgetary provisions should benefit Lockheed along with other defense manufacturers like Northrop Grumman (NOC - Free Report) , Boeing (BA - Free Report) and Textron (TXT - Free Report) , which also have expertise in manufacturing military aircraft.
Since its inception, Northrop Grumman has been a pioneer in the development of manned aircraft for combat. Northrop Grumman also has a tradition of providing technological leadership in all aspects of military aviation and aircraft, such as manned, unmanned, targeting, surveillance, and aircraft self-protection systems that enable warfighters to accomplish missions anytime, anywhere and under any conditions.
Northrop Grumman boasts a long-term earnings growth rate of 2.2%. The stock has gained 38.7% in the past year.
Boeing’s Defense, Space & Security segment’s primary products include fixed-wing military aircraft, F/A-18E/F Super Hornet, F-15 programs, P-8 programs, KC-46A Tanker, and T-7A Red Hawk. This segment also produces rotorcraft and rotary-wing programs such as CH-47 Chinook, AH-64 Apache and V-22 Osprey.
BA stock boasts a long-term earnings growth rate of 4%. The Zacks Consensus Estimate for 2022 earnings implies growth of 14.8% from the 2021 reported figure.
Textron’s business unit, Textron Aviation Defense, designs, builds and supports versatile and globally known military aircraft preferred for training and attack missions. Some of Textron’s renowned products include Beechcraft T-6C trainer and AT-6 Wolverine.
Textron boasts a long-term earnings growth rate of 12.5%. The Zacks Consensus Estimate for TXT’s 2022 sales indicates a 6% improvement from the 2021 reported figure.
Price Movement
In the past year, shares of Lockheed have gained 21.4% against the industry’s 32.6% decline.
Image Source: Zacks Investment Research
Zacks Rank
Lockheed Martin currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.