Lockheed Martin Corporation
(
LMT
) has been selected to support the Defense Information Systems
Agency ("DISA") under a seven-year Global Systems Management
Operations ("GSM-O") contract. This contract award, worth $4.6
billion, has a customary three-year base period and two two-year
extension options.
Per the agreement, Lockheed Martin will supervise the
transformation of the Department of Defense's ("DoD") global data
network. This will significantly improve the speed and efficacy of
information exchange between U.S. warfighters and their allies
across the world. The upgraded network will support new
technologies and communication capabilities that directly impact
the chances of a warfighter's success in critical missions.
The DISA offers global information and technological support
through an online platform to the armed forces and the DoD. Its
main aim is to supply secure and reliable communications networks,
computers, databases and software to the DoD. DISA enables the U.S.
military forces to stay connected irrespective of their location,
gathers intelligence for crucial missions and receives accurate and
secure information on potential threats.
The contract offers sophisticated operations, and engineering
services along with required equipments and amenities to support
the lifecycle management of the network. Apart from Lockheed
Martin, other members in DISA contracts include
AT&T, Inc.
(
T
), BAE Systems plc and other specialized organizations.
Lockheed Martin is well poised to successfully deliver
information technology management services, infrastructure and
applications, and provide maximum benefit to the U.S. and several
other international defense establishments.
The company expects full year 2012 earnings to be in the range
of $7.70 - $7.90 per share, on revenues in the range of $45
billion-$46 billion. As per the Zacks Consensus Estimate, the
company's second quarter and full year 2012 earnings are expected
to be $1.92 and $7.90 per share, respectively.
As the world's largest standalone defense contractor, Lockheed
Martin has a strong contract pipeline. Post first quarter 2012, the
company has signed contracts worth $25.8 billion with different
divisions of the U.S. military and international defense
establishments.
We expect Lockheed Martin to report a stable performance in the
forthcoming quarters owing to its leveraged presence in the U.S.
Army, Air Force, Navy and the armed forces of its international
allies.
Lockheed Martin Corporation retains a Zacks #3 Rank, which
translates into a short-term Hold rating.
Bethesda, Maryland-based Lockheed Martin Corporation is a global
security and aerospace company that is principally engaged in the
research, design, development, manufacture, integration and
maintenance of advanced technology systems, products and services.
LOCKHEED MARTIN (LMT): Free Stock Analysis
Report
AT&T INC (T): Free Stock Analysis Report
To read this article on Zacks.com click here.