Lockheed Martin Aeronautics Company, a key unit of
Lockheed Martin Corporation
), received a modification contract of $54.6 million from the
U.S. Department of Defense (DoD). Lockheed Martin, one of the
prime U.S. defense contractors, has been receiving a good many
DoD contracts on the back of its diversified product portfolio.
In this current contract, the company will provide non-recurring
technical support of the F-35 Lot VII program for the U.S. Navy,
U.S. Air Force and other international partner governments. Under
this contract, the company will provide manufacturing support and
technical knowledge related to F-35 production. Work under this
contract is scheduled to complete by Jan 2015.
The F-35 fighter jet is Pentagon's costliest program. Its unique
capabilities and operational efficiency have roped in orders not
only from the U.S. military forces but also from allied
countries. Though sequestration has negatively impacted Lockheed
Martin's sales, the F-35 warplane despite its many critics
continued to find support in 2013. Moreover, the $1.1 trillion
Omnibus spending measure President Obama signed into law was a
major boost for this defense contractor.
In Mar 2014, Lockheed Martin received a sizable $698 million
contract from the DoD. Per the contract, the company will provide
the long lead parts, materials and components required for the
production of 53 LRIP and Lot IX F-35 JSF.
Despite persistent threats of defense budget cuts, Lockheed
Martin seems confident of 2014. For the year, the company has
provided an earnings guidance range of $10.25 to $10.55 per
share. The current Zacks Consensus Estimate for 2014 at $10.60 is
above the high end of the guidance.
Currently, Lockheed Martin holds a Zacks Rank #3 (Hold). Other
well-ranked defense players include
Huntington Ingalls Industries, Inc.
General Dynamics Corp.
Northrop Grumman Corp.
). While Huntington Ingalls holds a Zacks Rank #1 (Strong Buy),
General Dynamics and Northrop Grumman carry a Zacks Rank #2
GENL DYNAMICS (GD): Free Stock Analysis
HUNTINGTON INGL (HII): Free Stock Analysis
LOCKHEED MARTIN (LMT): Free Stock Analysis
NORTHROP GRUMMN (NOC): Free Stock Analysis
To read this article on Zacks.com click here.