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Lockheed Martin (LMT) Unit Wins $16M Navy Deal for C-130T
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Lockheed Martin Corp.’s (LMT - Free Report) unit, Rotary and Mission Systems, has won a modification contract from the U.S. Navy to incorporate the data integrity requirement into the current avionics obsolescence upgrade effort for the C-130T aircraft.
Contract Details
The contract is valued at $16.1 million. It was awarded by the Naval Air Systems Command, Patuxent River, MA.
Work is scheduled to be complete by Mar 2018. Majority of the work will be performed in Ottawa, Canada, while the rest in Owego, NY. The contract will use fiscal 2015 and 2016 aircraft procurement funds (Navy).
A Brief Note on C-130T
Lockheed Martin’s C-130T aircraft is a high wing, all metal, long-range, land-based monoplane. It is powered by four Allison T56-A-16 turboprop, constant-speed engines. The aircraft provide logistics support to operating forces of the Navy fleet. The C-130T aircraft offers rapid transportation for personnel or cargo for delivery by parachute or landing.
The aircraft has the capability of landing and taking off on short runways and can be used on landing strips. It can provide mission capabilities for instance emergency evacuation of personnel and key equipment, advanced party reconnaissance, and special warfare operations, as directed.
Impact of this deal on Lockheed Martin
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. The company witnesses persistently robust demand for its programs in the international markets.
Meanwhile, the fiscal 2017 budget proposal reflects an annual increase of approximately $2.2 billion compared to the fiscal 2016 budget. The increased spending would be allocated to certain key areas that can unlock significantly higher opportunities for Lockheed Martin.
Rotary and Mission System’s sales in the third quarter were $3.3 billion, an increase of 55% from the prior-year quarter driven by higher revenues from Sikorsky. Given the company’s proven success in the combat aircraft business line, the company is expected to win more such contracts going forward. This in turn will significantly boost the future growth of this business division.
Price Movement
Lockheed’s stock has improved about 21.8% in the last one year, outperforming the Zacks categorized Aerospace/Defense industry’s gain of 11.2% over the same time frame. This could be because Lockheed continues to witness a steady flow of contracts from the Pentagon and other international customers.
Zacks Rank & Other Key Picks
Lockheed Martin currently has a Zacks Rank #2 (Buy). A few other favorably ranked stocks in the aerospace and defense space include Engility Holdings, Inc. , Northrop Grumman Corporation (NOC - Free Report) and Leidos Holdings, Inc. (LDOS - Free Report) .
On an average, Engility posted a positive earnings surprise of 23.19% in the trailing four quarters. The company’s 2016 earnings estimates increased 13.4% over the last 60 days. Engility sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Northrop Grumman, another Zacks Rank #1 stock, delivered a positive earnings surprise of 8.29% in the trailing four quarters. The company’s 2016 earnings estimates inched up 0.1% in the last 30 days.
Leidos Holdings carries a Zacks Rank #2. The company’s 2016 earnings estimates increased 10.6% over the last 30 days. On an average, the company has delivered a positive earnings surprise of 12.20% in the trailing four quarters.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
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Lockheed Martin (LMT) Unit Wins $16M Navy Deal for C-130T
Lockheed Martin Corp.’s (LMT - Free Report) unit, Rotary and Mission Systems, has won a modification contract from the U.S. Navy to incorporate the data integrity requirement into the current avionics obsolescence upgrade effort for the C-130T aircraft.
Contract Details
The contract is valued at $16.1 million. It was awarded by the Naval Air Systems Command, Patuxent River, MA.
Work is scheduled to be complete by Mar 2018. Majority of the work will be performed in Ottawa, Canada, while the rest in Owego, NY. The contract will use fiscal 2015 and 2016 aircraft procurement funds (Navy).
A Brief Note on C-130T
Lockheed Martin’s C-130T aircraft is a high wing, all metal, long-range, land-based monoplane. It is powered by four Allison T56-A-16 turboprop, constant-speed engines. The aircraft provide logistics support to operating forces of the Navy fleet. The C-130T aircraft offers rapid transportation for personnel or cargo for delivery by parachute or landing.
The aircraft has the capability of landing and taking off on short runways and can be used on landing strips. It can provide mission capabilities for instance emergency evacuation of personnel and key equipment, advanced party reconnaissance, and special warfare operations, as directed.
Impact of this deal on Lockheed Martin
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. The company witnesses persistently robust demand for its programs in the international markets.
Meanwhile, the fiscal 2017 budget proposal reflects an annual increase of approximately $2.2 billion compared to the fiscal 2016 budget. The increased spending would be allocated to certain key areas that can unlock significantly higher opportunities for Lockheed Martin.
Rotary and Mission System’s sales in the third quarter were $3.3 billion, an increase of 55% from the prior-year quarter driven by higher revenues from Sikorsky. Given the company’s proven success in the combat aircraft business line, the company is expected to win more such contracts going forward. This in turn will significantly boost the future growth of this business division.
Price Movement
Lockheed’s stock has improved about 21.8% in the last one year, outperforming the Zacks categorized Aerospace/Defense industry’s gain of 11.2% over the same time frame. This could be because Lockheed continues to witness a steady flow of contracts from the Pentagon and other international customers.
Zacks Rank & Other Key Picks
Lockheed Martin currently has a Zacks Rank #2 (Buy). A few other favorably ranked stocks in the aerospace and defense space include Engility Holdings, Inc. , Northrop Grumman Corporation (NOC - Free Report) and Leidos Holdings, Inc. (LDOS - Free Report) .
On an average, Engility posted a positive earnings surprise of 23.19% in the trailing four quarters. The company’s 2016 earnings estimates increased 13.4% over the last 60 days. Engility sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Northrop Grumman, another Zacks Rank #1 stock, delivered a positive earnings surprise of 8.29% in the trailing four quarters. The company’s 2016 earnings estimates inched up 0.1% in the last 30 days.
Leidos Holdings carries a Zacks Rank #2. The company’s 2016 earnings estimates increased 10.6% over the last 30 days. On an average, the company has delivered a positive earnings surprise of 12.20% in the trailing four quarters.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>