Lockheed Martin Corp.
), through its Mission Systems and Training unit, won a
firm-fixed-price contract from the Department of Defense (DoD)
for six B-2 line replaceable units, data, material lay-in, and
The contract has a total value of $53.6 million with the primary
three-year period expected to wind up by Jul 2016. Lockheed
Martin also has an additional two-year option period till 2018 to
perform the work.
Lockheed has received numerous contracts in the last few months
thanks to its diversified operations focusing on ISR, unmanned
systems, force protection, cyber security, and missile defense.
Bethesda, Md.-based Lockheed Martin is a global security and
aerospace company that is principally engaged in the research,
design, development, manufacture, integration and sustainment of
advanced technology systems, products and services.
Earlier this month, a Lockheed Martin business wing, Mission
Systems and Training, won a $295 million DoD contract for work on
the Aegis missile defense. This is a sole-source,
incentive fee contract modification, under which Lockheed Martin
will provide system engineering and program management services.
This is mainly intended for the development of Aegis Ballistic
Missile Defense Baseline, which would support the 5.1 variant
through the Critical Design Review and Increment-2 through the
Preliminary Design Review. The company's work on the contract
will continue through Mar 30, 2015.
Lockheed Martin's Mission Systems and Training division also won
a $6.9 million cost-plus-incentive-fee, cost-plus-fixed-fee
contract to perform additional Aegis development work for the
U.S. Navy. The deal though minor has an option, which can boost
the total value to $304.4 million, if exercised.
Despite the lurking fears of sequestration and its adverse impact
on U.S. defense budgets, we expect Lockheed Martin to register a
stable performance in the long run due to a leveraged presence in
the Army, Air Force, Navy and IT programs.
Lockheed Martin is a Zacks Rank #3 (Hold) stock. Other stocks
from the sector that are presently performing well include
The Boeing Company
Northrop Grumman Corp.
), all with a Zacks Rank #2 (Buy).
BOEING CO (BA): Free Stock Analysis Report
EMBRAER AIR-ADR (ERJ): Free Stock Analysis
LOCKHEED MARTIN (LMT): Free Stock Analysis
NORTHROP GRUMMN (NOC): Free Stock Analysis
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