) received a $115.9 million contract extension from the U.S. Army
Aviation and Missile Command for the delivery of engineering
support services to the Patriot Air and Missile Defense System.
The original contract was awarded in the first quarter of
Patriot missile upgrades will be carried out by Raytheon at
the Integrated Air Defense Center in Andover, Mass.; IDS
Headquarters in Tewksbury, Mass.; the Warfighter Protection
Center in Huntsville, Ala.; and the Mission Capability
Verification Center in White Sands, N.M.
Under the contract, Raytheon will continue to offer improved
capability support which includes system analysis, software
advancement, testing and logistics support and other
country-specific system needs. Raytheon intends to upgrade the
Patriot Missiles to better equip the U.S. Army and Foreign
Military Sales customers to meet evolving threats.
Raytheon is a key contractor of the Patriot missiles both in
the U.S. and internationally and is the system integrator for
Patriot Advanced Capability-3 missiles. The patriot missiles have
revolutionized defense systems all over the world with North
American Treaty Organization and 12 Patriot partners currently
relying on the Patriot system for protection against outside
forces. However, the number might rise as negotiations with
Kuwait for the Patriot system are nearing completion.
The Post Deployment Build-7 is the latest software addition to
the Patriot Missile and Defense systems. This will provide
cutting edge capabilities to soldiers by leveraging the Patriot
Configuration-3 hardware modernization in the radar and battle
management command, control, communication, computers, and
Recently, the company was able to secure sizeable contracts
from the Department of Defense of which the biggest was valued at
$534.8 million for the production of Advanced Medium-Range
Air-to-Air Missiles for the U.S. Air Force and the militaries of
Oman and Saudi Arabia.
The series of contracts will certainly prove beneficial for
Raytheon and will enable the company to maintain a stable
earnings stream amidst the current budget sequestration in the
U.S. At present, Raytheon retains a Zacks Rank #2 (Buy).
Other stocks looking good are Zacks Ranked #1 (Strong Buy)
Erickson Air-Crane Inc.
) and Zacks Ranked #2 (Buy)
Wesco Aircraft Holdings, Inc.
) as well as
Alliant Techsystems Inc.
ALLIANT TECHSYS (ATK): Free Stock Analysis
ERICKSON AIR-CR (EAC): Free Stock Analysis
RAYTHEON CO (RTN): Free Stock Analysis Report
WESCO AIRCRAFT (WAIR): Free Stock Analysis
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