) won a U.S. Navy contract for AGM-154C-1 Joint Standoff Weapons
("JSOW"). The contract, valued at $80.5 million, is for 200 units
of Full Rate Production Lot 9 of JSOW.
GENL DYNAMICS (GD): Free Stock Analysis
LOCKHEED MARTIN (LMT): Free Stock Analysis
NORTHROP GRUMMN (NOC): Free Stock Analysis
RAYTHEON CO (RTN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Raytheon-designed JSOW is a family of low-cost, air-to-ground
1000-lb. glide bomb that can travel as far as 78 miles to hit a
target. For this, it employs an integrated Global Positioning
System ("GPS")/ /Inertial Navigation System and terminal imaging
infrared seeker, directing the weapon to the target. Raytheon
expects to complete work on this order by Jul 2015.
Raytheon is one of the best-positioned companies among the
large-cap defense players, such as,
Northrop Grumman Corp.
Lockheed Martin Corporation
General Dynamics Corporation
In fact, Raytheon is one of the largest aerospace and defense
companies in the U.S., with a diversified line of military
products, including missiles, radars, sensors, surveillance and
reconnaissance equipment, communication and information systems,
naval systems, air traffic control systems, and technical
services. Future growth will be driven by its focus on
Intelligence, Surveillance and Reconnaissance unmanned systems,
training, cyber security, Standard Missile-6, Patriot, Zumwalt
and Terminal High Altitude Area Defense.
Recently, Raytheon received an international order worth $106
million for its Paveway II smart bombs. Per this direct
commercial sale contract, the company will provide Paveway kits
for both GBU-12 (500lb) and GBU-58 (250lb) guided bombs.
Of late, domestic contract flows for Raytheon have been
low-priced owing to the defense budget austerity in the U.S. We
believe the continued cutbacks in the sector will weigh on the
company's profitability. However, strong international orders
will offer a relief to Raytheon's business.
Raytheon at present carries a Zacks Rank #3 (Hold). Based in
Waltham, Mass., Raytheon Company, together with its subsidiaries,
provides electronics, mission systems integration, and other
capabilities to the U.S. and internationally.