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Lockheed Martin (LMT) Wins $133M Deal for KC-130J Aircraft
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Defense prime Lockheed MartinCorp.’s (LMT - Free Report) Aeronautics division has received a modification contract from the U.S. Air Force for the government-configured KC-130J aircraft. The contract is valued at $132.6 million and was awarded by the Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, OH.
Per the terms of the contract, Lockheed Martin will supply 2 KC-130J aircraft to France. Work is scheduled to be executed in Marietta, GA and will be completed by Apr 30, 2020.
The KC-130J is a multi-role tanker aircraft which achieved initial operational capability in 2005. The aircraft, which integrates a fire control unit for weapon systems, is an advanced derivative of Lockheed Martin’s renowned C-130J transport jet.
Primary missions of the KC-130J tactical aircraft include aerial refueling, tactical transportation of passengers and cargo, aerial delivery, ground refueling and emergency re-supply.
In addition, KC-130J can accommodate 92 ground troops or 64 paratroopers and equipment, while conducting tactical transport duties. It can carry 74 patients on stretchers and accompaniments in medical rescue operations.
Our View
Late last month, Lockheed Martin won a modification contract, worth $28 million, from the U.S. Air Force for the C-130J aircraft. Per the modification, Lockheed Martin will manufacture five aircraft in addition to the number of units specified in the base contract.
Lockheed Martin is the largest U.S. defense contractor with a platform-centric focus that guarantees a steady inflow of follow-on orders from a leveraged presence in the Army, Air Force, Navy and IT programs. In the second quarter of 2016, the company recorded revenue growth of $250 million in its Aeronautics business division, which reflects huge demand for its products in the global market.
Also, the company has raised its 2016 sales outlook for the Aeronautics division by $350 million. We believe that the latest contract win for the KC-130J aircraft will support the raised sales guidance for the Aeronautics division.
Stocks to Consider
Lockheed Martin currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the aerospace and defense sector include Engility Holdings, Inc. , General Dynamics Corporation (GD - Free Report) and Ducommun Inc. (DCO - Free Report) . While Engility and Ducommun sport a Zacks Rank #1 (Strong Buy), General Dynamics carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
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Lockheed Martin (LMT) Wins $133M Deal for KC-130J Aircraft
Defense prime Lockheed Martin Corp.’s (LMT - Free Report) Aeronautics division has received a modification contract from the U.S. Air Force for the government-configured KC-130J aircraft. The contract is valued at $132.6 million and was awarded by the Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, OH.
Per the terms of the contract, Lockheed Martin will supply 2 KC-130J aircraft to France. Work is scheduled to be executed in Marietta, GA and will be completed by Apr 30, 2020.
LOCKHEED MARTIN Price
LOCKHEED MARTIN Price | LOCKHEED MARTIN Quote
About the KC-130J
The KC-130J is a multi-role tanker aircraft which achieved initial operational capability in 2005. The aircraft, which integrates a fire control unit for weapon systems, is an advanced derivative of Lockheed Martin’s renowned C-130J transport jet.
Primary missions of the KC-130J tactical aircraft include aerial refueling, tactical transportation of passengers and cargo, aerial delivery, ground refueling and emergency re-supply.
In addition, KC-130J can accommodate 92 ground troops or 64 paratroopers and equipment, while conducting tactical transport duties. It can carry 74 patients on stretchers and accompaniments in medical rescue operations.
Our View
Late last month, Lockheed Martin won a modification contract, worth $28 million, from the U.S. Air Force for the C-130J aircraft. Per the modification, Lockheed Martin will manufacture five aircraft in addition to the number of units specified in the base contract.
Lockheed Martin is the largest U.S. defense contractor with a platform-centric focus that guarantees a steady inflow of follow-on orders from a leveraged presence in the Army, Air Force, Navy and IT programs. In the second quarter of 2016, the company recorded revenue growth of $250 million in its Aeronautics business division, which reflects huge demand for its products in the global market.
Also, the company has raised its 2016 sales outlook for the Aeronautics division by $350 million. We believe that the latest contract win for the KC-130J aircraft will support the raised sales guidance for the Aeronautics division.
Stocks to Consider
Lockheed Martin currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the aerospace and defense sector include Engility Holdings, Inc. , General Dynamics Corporation (GD - Free Report) and Ducommun Inc. (DCO - Free Report) . While Engility and Ducommun sport a Zacks Rank #1 (Strong Buy), General Dynamics carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>