Lockheed to Aid Antarctic Research - Analyst Blog

By Zacks Equity Research,

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Lockheed Martin Corporation ( LMT ) has received a contract from the National Science Foundation ("NSF") for operation and maintenance of the support infrastructure for the United States Antarctic Program ("USAP"). The USAP programs facilitate universities, research institutions and federal agencies to carry out scientific research in the region. If all options are exercised, the multi-year contract is worth $2 billion.

National Science Foundation is the care taker of the USAP. Besides financing the program for research in Antarctica, NSF also provides logistics and infrastructure needed by other federal agencies for their research. The main goal of the USAP is to understand the region and its dependency and responses to climate and environment.

Antarctica's remoteness and extreme climate make it a unique and natural laboratory. The USAP uses the region as a source for fundamental research in every scientific discipline.

Per the contract, the company will work with the NSF to implement a cost-effective, streamlined infrastructure for managing work stations and medical facilities, research vessels, construction projects and remote sites in and around Antarctica. It will also provide modern technology to transport scientists, staff and other infrastructure required to and from the Antarctic region. Lockheed Martin's know-how and competence would be used to facilitate research that is only possible or done best in this harsh polar region.

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. Over the longer run, we expect the company to register a stable performance driven by a leveraged presence in the Army, Air Force, Navy and IT programs.

We also expect shareholder return to continue to be shored up by the company's focus on debt repayment, its ongoing share repurchase program and the incremental dividend. However, we fear for further cutbacks in defense budgets. The company presently retains a short-term Zacks #3 Rank (Hold) that corresponds with our long-term Neutral recommendation on the stock.

Based in Bethesda, Maryland, Lockheed Martin is a global security company that is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The company mainly competes with Northrop Grumman Corporation ( NOC ) and Raytheon Company ( RTN ).

LOCKHEED MARTIN ( LMT ): Free Stock Analysis Report
NORTHROP GRUMMN ( NOC ): Free Stock Analysis Report
RAYTHEON CO ( RTN ): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: LMT , NOC , RTN

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