) has received a contract to start the full rate production of
High-Speed Anti-Radiation Missile ("HARM") Control Section
Modification ("HCSM") upgrade units. The contract is worth $12.3
The High-Speed Anti-Radiation Missile is the key battlefield
element that destroys surface-to-air missile radars, early
warning radars and radar-directed air defense artillery systems.
The missile has made hostile airspaces worldwide, which is safer
for the U.S. and allied warfighters.
Control Section Modification also has a digital flight computer
that amalgamates targeting solutions with navigation and seeker
systems. These improvements and modifications increase the
chances of hitting the target accurately while enabling to decide
where the missile can or cannot fly.
With the inclusion of Control Section Modification, a Global
Positioning System ("GPS") receiver and an improved inertial
measurement unit ("IMU") for precision navigation is added to
HARM. The GPS is a space-based satellite navigation system
that provides location and time information in all climatic
conditions anywhere on the Earth, where there is an unobstructed
line of sight. The system provides critical capabilities to
military, civil and commercial users around the world. Moreover,
besides reducing the risk of fratricide or collateral damage,
modification allows HARM to degrade counter-HARM tactics.
Lockheed Martin Corporation
) had also received a contract from the U.S. Air Force Space
Command Space and Missile Center to provide support to the ground
control systems in the Global Positioning System ("GPS")
Based in Waltham, Massachusetts, Raytheon Company is a technology
and innovation leader specializing in defense, homeland security
and other government markets throughout the world. Raytheon
provides modern electronics, mission systems integration and
other capabilities in the areas of sensing; effects; and command,
control, communications and intelligence systems, as well as a
broad range of mission support services.
Raytheon is one of the best-positioned companies among the
large-cap defense players due to its non-platform-centric focus.
Looking forward, the company enjoys strong order bookings and
order backlog, an improving balance sheet, growing cash flow, and
However, we prefer to remain on the sidelines due to the
apprehensions over the future growth of the U.S. defense budget,
the fate of high-cost programs, risks related to key project
executions and order cancellations. The company presently retains
a short-term Zacks Rank #3 (Hold) that corresponds with our
long-term Neutral recommendation on the stock.
LOCKHEED MARTIN (LMT): Free Stock Analysis
RAYTHEON CO (RTN): Free Stock Analysis Report
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