Lockheed Martin Corp. ( LMT ) has received a
fixed-price contract worth $284.4 million for the supply of long
lead parts for the fifth and sixth Geosynchronous Earth Orbit
("GEO") satellites in the Space Based Infrared System (SBIRS)
missile warning constellation.
Earlier, in Oct 2012, the company had received a contract to begin
initial work on the fifth and sixth GEO satellites. Per the
contract, the company had to complete non-recurring engineering
activities on the satellites. They were also responsible for
procuring select long lead spacecraft parts.
Per the current contract, the company is authorized to purchase
the remaining long lead spacecraft components. Later, the company
will receive a fixed-price contract for satellite production.
The SBIRS program provides resilient and improved missile warning
capabilities to the military's missile defense, technical
intelligence and battle space awareness mission areas with GEO
satellites, hosted payloads in highly elliptical earth orbit, and
associated ground hardware and software. Two HEO payloads and the
first geosynchronous (GEO-1) satellite have already been launched.
GEO-2 is expected to be released soon.
Meanwhile, the company has also received a five-year contract
worth $100 million to provide combat system engineering services
for all Aegis-equipped ships. Per the contract, the company will
provide design, development, integration, test and life cycle
support for the ships. Aegis is the world's premier combat system.
Aegis-equipped ships are multi-mission surface combatants that can
simultaneously attack land targets, submarines and surface
The company seems to be loaded with a number of contracts.
Recently, the company had also received funding in the amount of
$696,629,123 for construction of two Littoral Combat Ships.
Lockheed Martin is a leader in combat systems integration and the
development of integrated air and missile defense systems and
technologies. The company makes significant contributions to most
major U.S. missile defense systems, and participates in several
global missile defense partnerships. It 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.
Going forward, we expect shareholder return to continue to be
shored up by the company's focus on debt repayment and its ongoing
share repurchase program. The company presently retains a
short-term Zacks Rank #2 (Buy).
Other stocks to consider are The Boeing Company
( BA ),
Rockwell Collins Inc. ( COL ) and
Alliant Techsystems Inc. ( ATK ), all with a Zacks
Rank #2 (Buy).ALLIANT TECHSYS (ATK): Free Stock Analysis
ReportBOEING CO (BA): Free Stock Analysis ReportROCKWELL COLLIN (COL): Free Stock Analysis
ReportLOCKHEED MARTIN (LMT): Free Stock Analysis
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