The U.S. Department of Defense (DoD) dispersed 18 contracts
worth $870 million to a number of public and privately traded
firms on Sep 18, 2013. Some of the defense players receiving
contracts that day included
The Boeing Company
Lockheed Martin Corp.
), and BAE Systems plc (BAESY).
Boeing received three contracts worth $212.4 million, which
comprised roughly a quarter of the total contract value. Per the
first contract worth $172.3 million, the company will provide
services on 13 low-rate initial production Lot IV P-8A Poseidon
sub-hunting aircraft. The contract runs through Apr 2017. Per the
second contract worth $23.6 million, the company will supply
eight instrumentation wafer components and support for those
components. The contract is expected to be completed by Apr 30,
2016. The final contract entails the repair of various parts on
an unspecified number of AV-8 Harrier jump jets for the U.S.
Marine Corps. The contract runs through Sep 30, 2015.
Lockheed Martin received a modification contract worth $99
million for the purchase of long lead-time parts, material and
components required to build 19 conventional takeoff and landing
F-35A stealth fighters for the U.S. Air Force. The contract is
scheduled to be completed in Jun 2014.
Raytheon has received a modification contract to carry out an
Engineering Analysis on U.S. Army and Air Force AIM-9X Sidewinder
Block II Missile Systems. This contract worth $10.3 million runs
through Mar 2014.
Sequestration and spending cuts were expected to adversely affect
the performances of the defense behemoths that explicitly provide
products and services to the U.S. Department of Defense (DoD).
However, the defense players are doing well despite the fear of
Damocles' sword hanging over defense budgets and big-ticket
programs. Small contracts doled out by the DoD have kept alive
the revenue stream of these companies.
While Lockheed Martin holds a short-term Zacks Rank #1 (Strong
Buy), Raytheon carries a short-term Zacks Rank #2 (Buy). Boeing
presently retains a short-term Zacks Rank #3 (Hold). We also have
Northrop Grumman Corp.
) in the space, with a Zacks Rank #2 (Buy), worth
BOEING CO (BA): Free Stock Analysis Report
LOCKHEED MARTIN (LMT): Free Stock Analysis
NORTHROP GRUMMN (NOC): Free Stock Analysis
RAYTHEON CO (RTN): Free Stock Analysis Report
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