Lockheed Martin Corporation
) has received a $207 million contract modification from the US
Naval Air Systems Command to integrate unique Israeli equipment
into the F-35 Joint Strike Fighter ("JSF"). The contract is a part
of Pentagon's Foreign Military Sales program and the task is
expected to be completed by May 2016.
GENL DYNAMICS (GD): Free Stock Analysis Report
LOCKHEED MARTIN (LMT): Free Stock Analysis
NORTHROP GRUMMN (NOC): Free Stock Analysis
To read this article on Zacks.com click here.
Per the contract modification, the company will develop hardware
and software for the Israel F-35A conventional take-off and landing
("CTOL") air system. This will integrate Israeli systems from the
initial requirements development to the Preliminary Design Review
The contract had originated at the end of July 2012. In July 2012,
Pentagon had entered into an agreement with Lockheed for the
enhancement of Electronic Warfare ("EW") equipment on the F-35
fighter jet and integrate Israeli-unique systems beginning in 2016
under a $450 million program.
As a result of this contract, negotiations between Israel and the
US will be finalized as special adaptation of the F-35 aircraft was
a key element in Israel's agreement to buy F-35 jets from Lockheed
in October 2010.
Joint Strike Fighter ("JSF") is a development and acquisition
program, which is intended to replace a wide range of existing
fighter, strike, and ground attack aircraft for the United States,
the United Kingdom, Canada, Australia and their allies.
Lockheed Martin is the largest defense contractor in the world. The
company's customer base includes the U.S. government, foreign
governments, and other commercial buyers. Few days back, Lockheed
Martin posted second-quarter 2012 continuing earnings of $2.38 per
share, beating the Zacks Consensus Estimate of $1.92.
Going forward, we are bullish based on the incremental dividend
payout, a stable order backlog, the company's focus on debt
repayment and its ongoing share repurchase program. The company
presently retains a short-term Zacks #2 Rank (Buy). We have a
long-term Out perform recommendation on the stock.
Based in Bethesda, Md., Lockheed Martin is a global security
company principally engaged in the research, design, development,
manufacture, integration and sustainment of advanced technology
systems, products and services.
The company mainly competes with
General Dynamics Corporation
Northrop Grumman Corporation