L-3 Communications Holdings Inc.
Lockheed Martin Corp.
United Technologies Corp.
) received contracts worth a cumulative $2.4 billion from the
Department of Defense (DoD).
ALLIANT TECHSYS (ATK): Free Stock Analysis
L-3 COMM HLDGS (LLL): Free Stock Analysis
LOCKHEED MARTIN (LMT): Free Stock Analysis
UTD TECHS CORP (UTX): Free Stock Analysis
To read this article on Zacks.com click here.
L-3 Communications clinched a firm-fixed-price modification
contract worth $6.7 million to produce, test, deliver, and
support five Common Data Link Hawklink AN/SRQ-4 radio terminal
sets. These sets will be utilized by four Navy and one Coast
Guard MH-60R Seahawk helicopters. The company expects the task to
be completed by May 2015.
Lockheed Martin was the beneficiary of a $9 million contract. Per
the contract, the company will provide services for the PATRIOT
Advanced Capability-3 air defense missile system.
Pratt & Whitney, a unit of United Technologies, has received
a fixed-price, indefinite-delivery, requirements type contract
with an estimated value of $11.4 million. The contract calls for
travel and relocation of 15 contractor engineering and technical
services representatives. The task will be performed on five Air
National Guard, one Navy, and nine foreign military F100, JT9D,
and J52 jet engines and is expected to be completed by Jun 25,
Publicly traded companies were not the only recipients of DoD
contracts. General Atomics, a privately held firm also received a
$28.3 million contract to manage the structural integrity of the
MQ-9 Reaper drone fleet throughout the aircraft's life cycle. The
task is expected to be completed by Sep 25, 2016.
As widely apprehended, defense companies would be severely
affected by the sequestration. Per a media report, budget cuts
from sequestration have reduced the number of contracts awarded
by DoD in April this year.
However, the latest flurry of DoD contracts would to some extent
offset the adverse situation A few days back, Data Link
Alliant Techsystems Inc.
), FLIR Systems Inc. and Lockheed Martin received DoD contracts.
In total, 22 contracts were issued with a cumulative value of
less than $500 million.
Large defense pros like L-3 Communications and Lockheed have
diversified business models, expertise and specialization in
various defense programs which will help counter the prevailing
L-3 Communications, Lockheed Martin and United Technologies, all
carry a short-term Zacks Rank #3 (Hold).