The Department of Defense ("DoD") handed out a string of
defense contracts totaling $1.2 billion on Tuesday. The DoD
awarded 20 individual contracts of which a quarter went to the
Lockheed Martin Corp.
The company secured a lofty $308.3 million foreign military
sales ("FMS') contract for the continued delivery of tactical
missiles and launcher modification kits to Kuwait military
forces. The tasks related to this contract will be carried out in
Grand Prairie, Lufkin and El Paso, Texas; Camden, Ark.;
Chelmsford, Mass.; Ocala, Fla.; Huntsville, Ala.; and Anaheim,
Apart from this, Lockheed also received three more
modification contracts of a sum of $108.7 million. The first - a
$37.4 million FMS contract - supports cost reductions at the
improved launcher electronic station servicing Patriot air
defense missile systems in the United Arab Emirate.
The second comprised a $35.7 million contract for providing
information technology solutions to the DoD and National Capital
Region. The final contract valued at $35.6 million involved
upgrading the fire control system of Lockheed's M270A1 Multiple
Launch Rocket System.
Lockheed has been flooded with an array of contracts in the
last few months thanks to its diversified operations focusing on
ISR, unmanned systems, force protection, cyber security, and
missile defense. Worth mentioning is the $209.0 million DoD
contract for the supply of additional AN/TPQ-53 radar systems and
corresponding spare parts. This is expected to increase the total
value of the contract to $605 million.
In addition, the steady flow of international orders will lend
constancy to the company's earnings stream amidst the defense
budget crunch. We believe Lockheed's varied operational
capabilities will allow it to win more orders in the upcoming
The Bethesda, Md. based company currently carries a Zacks Rank
#3 (Hold). Other defense majors which collected sizeable DoD
Northrop Grumman Corp.
BOEING CO (BA): Free Stock Analysis Report
LOCKHEED MARTIN (LMT): Free Stock Analysis
NORTHROP GRUMMN (NOC): Free Stock Analysis
RAYTHEON CO (RTN): Free Stock Analysis Report
To read this article on Zacks.com click here.