The Department of Defense handed out a slew of contracts worth
$225.4 million yesterday. Among the winners was
The Boeing Company
) which secured two orders valued at a total of $37.0
The bigger of the two awards was a $26.9 million modification
contract to a previously awarded contract to exercise an option
for partial redesigning of Lot 1 of its P-8A Poseidon sub-hunting
aircraft. The contracting activity is the Naval Air Systems
Command, Patuxent River in Maryland.
The contract is expected to run through Apr 2017 and the work
will be carried out in Seattle, Wash. The second contract, valued
at $10.1 million, calls for the repairing of 559 unspecified
items required to support the P8 aircraft. The tasks related to
the contract will be performed at Dallas, Texas, and is expected
to be concluded by Sep 30, 2015.
The P8 aircraft conducts anti-submarine warfare and shipping
interdiction as well as engages in an electronic intelligence
role. It also works in conjunction with the Broad Area Maritime
Surveillance unmanned aerial vehicle.
Boeing unveiled its latest P-8A Poseidon model at the 2013
Dubai Air Show to much fanfare. The latest incarnation of the P-8
offers more combat capability for the Navy using a smaller force
and fewer infrastructure.
The escalating security issues in the Middle East have the
prime countries rushing in to purchase high-tech defense products
from Boeing. In addition, increased penetration in the growing
airline markets of Latin America, Africa and Asia and a rise in
inter-regional travel have led to skyrocketing demand in the Gulf
The Dubai Expo fetched contracts worth $100 billion for the
company. Major airlines like Emirates Airline, Qatar Airways and
Etihad Airways were the key buyers of Boeing's flagship 777X jets
and 787 Dreamliners.
At home, despite the budget sequestration, Boeing has sizeable
orders on its plate. The company received contracts worth more
than $2 billion in Sep 2013 alone. Boeing's new P8 version will
lend substantial upside as the U.S. Navy has recently announced
its plans to purchase 117 P-8A aircraft.
Presently, Boeing carries a Zacks Rank #2 (Buy). Other
well-placed operators include Zacks Ranked #2
Lockheed Martin Corp.
Huntington Ingalls Industries, Inc.
Northrop Grumman Corp.
BOEING CO (BA): Free Stock Analysis Report
HUNTINGTON INGL (HII): Free Stock Analysis
LOCKHEED MARTIN (LMT): Free Stock Analysis
NORTHROP GRUMMN (NOC): Free Stock Analysis
To read this article on Zacks.com click here.