Lockheed Martin Corp.
) received a contract from the U.S. Air Force under which it will
conduct sustainment services for the reentry sub-system of
Minuteman III intercontinental ballistic missiles.
This contract carries an initial value of $109 million. Per this
contract, the prime designer, manufacturer and sustainer of
Minuteman III reentry systems since the 1960s - Lockheed Martin's
work includes repair, modification and testing of hardware and
software components in the reentry system-reentry vehicle as well
as related support equipment.
This contract, which has a one-year base period of performance and
options for an additional four years, is a part of the Air Force's
Future ICBM Sustainment and Acquisition Construct. It has been
designed to ensure a safe, secure and reliable Minuteman III weapon
system through 2030. If all options are exercised, the total
contract value would go up to $452 million.
Although the threat of sequestration still lurks over this defense
major, negatively impacting the company's first quarter 2014 sales,
Lockheed Martin continues to win both big and small contracts. This
has helped the company to register positive earnings surprises in
the last four quarters with an average beat of 20.2%. For 2014, the
company boosted its earnings forecast to the range of $10.50-$10.80
from the earlier expectation of $10.25-$10.55. The company has been
witnessing rising earnings estimates for 2014 on the back of
continuous order flows from the Pentagon's funding list.
Recently, Lockheed outmatched its rival bidder
) to clinch a big ticket contract for building a radar system to
track space junk. The contract, valued at a whopping $915 million,
involves the creation of a radar system at the Marshall Islands
located in northern Pacific Ocean.
Currently, Lockheed Martin holds a Zacks Rank #2 (Buy). Other
well-placed defense operators include Zacks Ranked #1 (Strong Buy)
) and Zacks Ranked #2 (Buy)
Leidos Holdings, Inc.
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