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Lockheed's (LMT) GOES-U Satellite Launch to Provide Critical Data

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Lockheed Martin Corp. (LMT - Free Report) constructed the GOES-U advanced weather satellite, which has been recently launched from NASA's Kennedy Space Center for the National Oceanic and Atmospheric Administration (“NOAA”). Meanwhile, the GOES-U series weather satellite was launched after more than 16 years of designing, building and testing four major weather satellites for the nation.

Benefits of the Launch

For weather forecasting, tracking severe storms and climate monitoring, GOES-U will provide vital data. Moreover, it will enhance atmospheric phenomenon identification, such as lightning and storms, with its sophisticated equipment. The National Weather Service and meteorologists may utilize this real-time data for early warnings, disaster preparedness and resource management, which can ultimately save lives and reduce economic losses.

The GOES-U satellite has two state-of-the-art instruments. First, a ground-breaking operational lightning mapper that tracks lightning strikes in real-time across the United States is called the Geostationary Lightning Mapper. With the use of this technology, meteorologists can quickly identify storms that are intensifying and take appropriate action. Additionally, the Solar Ultraviolet Imager assists in detecting active solar regions and forecasts solar events that may interfere with communication networks, power grids or navigation systems on Earth.

What’s Favoring Lockheed?

Various sectors are currently making use of Geostationary Earth Orbit (“GEO”) satellites for a wide range of applications, such as agriculture, transportation, disaster management and climate research. This increased utilization, along with the traditional roles in defense and space industries, has led to a noticeable rise in demand for advanced GEO satellites. One area experiencing a particularly high demand is the need for accurate and timely weather data as extreme weather events become more common due to climate change.

This must have prompted the Mordor Intelligence firm to expect the GEO Satellite market to witness a CAGR of 3.7% over the 2024-2029 period. Such a solid growth opportunity offered by the global GEO Satellite market should bode well for LMT.

Lockheed Martin collaborates with NASA, NOAA and other governmental agencies to offer state-of-the-art satellite systems for Earth observation missions. In addition to the GOES-U satellite, Lockheed Martin offers a broader variety of GEO satellites in its product line. LMT’s GOES-R satellite series provides vital atmospheric, hydrologic, oceanic, climatic, solar and space data, significantly improving the identification and monitoring of environmental events.

Given the growth of the GEO satellite market, LMT's recent launch is indicative of the high demand the company enjoys in this industry and suggests that there may be more such launches in the near future.

Peer Moves

Apart from Lockheed Martin, the growing GEO satellite market also provides growth opportunities to other aerospace players like Boeing (BA - Free Report) , Northrop Grumman Corp. (NOC - Free Report) and Airbus Group (EADSY - Free Report) , which hold a strong presence in this space.

Boeing has created several notable GEO satellite products throughout the years, serving a wide range of government, broadcasting and communication needs. Its flagship model, the 702 series GEO satellites, can operate in geosynchronous, medium-Earth and low-Earth orbits.

Boeing has a long-term (three to five years) earnings growth rate of 25.5%. The Zacks Consensus Estimate for BA’s 2024 sales implies an improvement of 0.9% from the prior-year reported figure.

Northrop Grumman's experience with satellite systems and payloads has contributed to the development of advanced weather monitoring capabilities. The JPSS-2 satellite, manufactured by the company, offers meteorological data and observations to help anticipate and prepare for extreme weather events, as well as monitor long-term climate changes.

Northrop Grumman boasts a long-term earnings growth rate of 8.7%. The Zacks Consensus Estimate for NOC’s 2024 sales implies an improvement of 4.6% from the prior-year reported figure.

Airbus has supplied more than110 GEO satellites to more than 60 countries across the world so far. Its MetOp-SG twin satellites A and B are intended to improve environmental research, climate monitoring and global weather forecasting.

Airbus’ long-term earnings growth rate is pegged at 17.9%. The Zacks Consensus Estimate for EADSY’s 2024 sales calls for an improvement of 8.2% from the prior-year reported figure.

Price Movement

In the past three months, shares of Lockheed Martin have risen 2.5% against the industry’s decline of 9.5%.

Zacks Investment Research
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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.

 

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