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Raytheon (RTN) Secures Navy Contract Worth $101.9 Million
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Raytheon Company has won a contract from the Naval Supply Systems Command Weapon Systems Support, PA for supporting the repair of 10 weapon replaceable assemblies for the AN/ALR-67(V)3 on the F/A-18 A/B/C/D/E/F aircraft. The contract is worth $101.9 million.
Details of the Contract
This contract spans over a base period of four years with a one-year option, which could take the value of the contract to $128.2 million.
Work will be performed mostly in California, in addition to other locations across the U.S. such as Florida, Pennsylvania, Arizona and New Hampshire.
The Navy will provide working capital funds of $27.5 million to cover the ongoing work. Work on the contract is anticipated to be over by Dec 2020.
Brief Note on the F/A 18
The F/A-18 aircraft, manufactured by The Boeing Company (BA - Free Report) , is a twin-engine, supersonic, all-weather, multirole fighter jet that is capable of landing and taking off from an aircraft carrier.
The company had rolled out the upgraded E and F models in 1995.
Price Movement
Raytheon’s stock has gained about 15.8% in the last one year, underperforming the Zacks Categorized Aerospace/Defense Equipment industry’s 20.2% over the same time frame.
This could be because Raytheon’s dependence on the U.S. government for military contracts, tough competition and political uncertainty are putting pressure on its stock price.
Notably, the company has witnessed seven downward estimate revisions for the current quarter over the last 60 days. The estimates have moved from $1.96 per share to $1.86 per share, reflecting a downside of 5.1%.
Zacks Rank & Key Picks
Raytheon carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the aerospace and defense space include Engility Holdings, Inc. and Northrop Grumman Corporation (NOC - Free Report) .
On an average, Engility posted a positive earnings surprise of 23.19% in the trailing four quarters. The company’s 2016 estimates have risen 13.3% over the last 60 days. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Northrop flaunts a Zacks Rank #1 as well. The company’s 2016 estimates have increased 6% over the last 60 days. On an average, the company delivered a positive earnings surprise of 8.3% in the trailing four quarters.
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Raytheon (RTN) Secures Navy Contract Worth $101.9 Million
Raytheon Company has won a contract from the Naval Supply Systems Command Weapon Systems Support, PA for supporting the repair of 10 weapon replaceable assemblies for the AN/ALR-67(V)3 on the F/A-18 A/B/C/D/E/F aircraft. The contract is worth $101.9 million.
Details of the Contract
This contract spans over a base period of four years with a one-year option, which could take the value of the contract to $128.2 million.
Work will be performed mostly in California, in addition to other locations across the U.S. such as Florida, Pennsylvania, Arizona and New Hampshire.
The Navy will provide working capital funds of $27.5 million to cover the ongoing work. Work on the contract is anticipated to be over by Dec 2020.
Brief Note on the F/A 18
The F/A-18 aircraft, manufactured by The Boeing Company (BA - Free Report) , is a twin-engine, supersonic, all-weather, multirole fighter jet that is capable of landing and taking off from an aircraft carrier.
The company had rolled out the upgraded E and F models in 1995.
Price Movement
Raytheon’s stock has gained about 15.8% in the last one year, underperforming the Zacks Categorized Aerospace/Defense Equipment industry’s 20.2% over the same time frame.
This could be because Raytheon’s dependence on the U.S. government for military contracts, tough competition and political uncertainty are putting pressure on its stock price.
Notably, the company has witnessed seven downward estimate revisions for the current quarter over the last 60 days. The estimates have moved from $1.96 per share to $1.86 per share, reflecting a downside of 5.1%.
Zacks Rank & Key Picks
Raytheon carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the aerospace and defense space include Engility Holdings, Inc. and Northrop Grumman Corporation (NOC - Free Report) .
On an average, Engility posted a positive earnings surprise of 23.19% in the trailing four quarters. The company’s 2016 estimates have risen 13.3% over the last 60 days. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Northrop flaunts a Zacks Rank #1 as well. The company’s 2016 estimates have increased 6% over the last 60 days. On an average, the company delivered a positive earnings surprise of 8.3% 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 >>