Lockheed Martin Corp.
) have again become a part of the Department of Defense's (DoD)
contracts. The companies have been fortunate to win the DoD
contract worth $880 million.
The DoD has given fourteen individual contracts to a number of
companies. Per the contract, these firms including Textron,
Lockheed Martin and Raytheon will provide helicopters, and
software as well as radar services.
Textron's unit Bell Helicopter has received a contract, worth
$38.8 million, to provide two new Lot 10 AH-1Z "Viper" attack
helicopters to the Marines. The contract is expected to be
completed by Sep 2013.
Lockheed Martin has received an
indefinite-delivery/indefinite-quantity contract, worth $27.9
million to preserve software aboard Air Force C-5 Galaxy
transport aircraft, offer engineering support on the same and
outline an emergency operational flight arrangement. The contract
is scheduled to be completed by Jun 2016.
Integrated Defense Systems division, a unit of Raytheon, has
received a modification contract, worth $10.4 million, to supply
radar digital processor upgrade kits for the PATRIOT
anti-aircraft missile system.
In May 2013, Textron received a cost-plus-fixed-fee, foreign
military sales contract, worth maximum $85.4 million, from the
DoD to provide engineering and technical support services.
Despite the continuous flow of contracts, the threat of
sequestration, fear from budget uncertainty, the fate of
high-cost programs, risks associated with key project executions
and order cancellations cannot be denied.
We believe the defense companies' effort toward wining more
international orders will enable them to maintain a regular
revenue flow. Some companies are also repositioning themselves in
order to streamline their operations and reduce operating
expenses. These initiatives will help the defense companies to
tackle the ongoing headwinds.
Raytheon currently has a Zacks Rank #2 (Buy) while Textron and
Lockheed Martin carry a Zacks Rank #3 (Hold). Other stocks from
the sector that are presently performing well include
) with a Zacks Rank #1 (Strong Buy).
ASTRONICS CORP (ATRO): Free Stock Analysis
LOCKHEED MARTIN (LMT): Free Stock Analysis
RAYTHEON CO (RTN): Free Stock Analysis Report
TEXTRON INC (TXT): Free Stock Analysis Report
To read this article on Zacks.com click here.