Lockheed Martin Corp.
) will continue to provide flight planning and safety support to
pilots as the Federal Aviation Administration ("FAA") has
extended the Automated Flight Service Stations ("AFSS") contract.
This extended two-year contract worth $221 million will begin on
Oct 1, 2013.
Lockheed Martin Flight Services has been updating and providing
general aviation flight planning services in the U.S. since 2005.
With its expertise, the company has been providing safe and
efficient flight planning services to a number of pilots annually
via phone and inflight radio.
However, with this contract, pilots are now able to file and
close flight plans with Flight Services online, receive text,
e-mail and satellite alerts during risky circumstances. Moreover,
they can activate precise life-saving search and rescue tracking
As a result of the company's efforts, in 2012, the company filed
more than 1 million flight plans for aviation pilots, provided
more than 1.5 million pilot weather briefings, answered 457,575
aviation radio contacts, and helped pilots in 6,691 aviation
search and rescue events.
In Sep 2010, the company received a five-year contract to operate
automated flight service stations. This five-year contract
included a three-year contract worth $356 million and a two-year
contract option. The current contract is the execution of the
two-year option. Per the three-year contract, Lockheed Martin
served the general aviation community under the AFSS contract.
Lockheed Martin 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. Despite the threat of sequestration,
the company continues to receive contracts.
Recently, the company received a modification contract to
provide technical services on the Aegis air defense system for
the U.S. Navy. Per this contract, the company will have an option
to provide technical engineering, configuration management,
related equipment/supplies, quality assurance, information
assurance, and additional operation and maintenance services for
the Navy's Aegis air defense system.
HUNTINGTON INGL (HII): Free Stock Analysis
LOCKHEED MARTIN (LMT): Free Stock Analysis
NORTHROP GRUMMN (NOC): Free Stock Analysis
RAYTHEON CO (RTN): Free Stock Analysis Report
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We expect the company to benefit from a strong defense focus on a
number of its platform programs, such as, the C-130 Hercules
& C-5 Galaxy transport aircraft, F-16 Fighting Falcon
multi-role jet, MH-60 Helicopters, the Advanced Extremely High
Frequency & the Global Positioning Satellite III system
satellites, the Littoral Combat Ship, the Aegis Weapons System
for mobile and sea-based missile defense and the Terminal High
Altitude Area Defense system. The company presently retains a
short-term Zacks Rank #2 (Buy).
Other stocks worth considering in the space are
Huntington Ingalls Industries, Inc.
Northrop Grumman Corp.
), all with a Zacks Rank #2 (Buy).