) has received a contract from the U.S. Air Force to provide up
to 18 Deployable Radar Approach Control (D-RAPCON) systems. The
contract will likely be worth $260 million though Raytheon has
been authorized $50.6 million for the early development stage of
the D-RAPCON units.
These rapidly deployable air traffic control ("ATC") systems can
be delivered anywhere in the world for use in military,
humanitarian, and emergency missions, the company said, and can
be set up and be operational within six hours.
The D-RAPCON system comprises a transportable antenna plus three
trailer-sized shelters which with the help of multiple controller
work stations lodge radar equipment, communications systems, and
an operations center. With its latest digital sensors,
communications equipment and advanced surveillance data
processing systems, D-RAPCON provides sequencing, separation of
aircraft, navigation assistance and airspace control services.
Raytheon is one of the best-positioned companies among the
large-cap defense players. Recently, the company indicated that
it is set to clinch a $2.1 billion arms deal to sell Oman an air
defense system during the U.S. Secretary of State John Kerry's
visit in the Gulf state this week. The company's international
opportunities encompass the Kuwait Patriot, the Oman ground-based
air defense system, the Qatar air defense system, air traffic
management, as well as radars and missiles. With the finalization
of the Oman deal, Raytheon seems to be well on-track with these
Looking forward, with its newly re-aligned segments, the company
enjoys strong order bookings and order backlog, an improving
balance sheet, growing cash flow and operational improvements.
This is, however, offset by 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).
However, stocks worth considering at present are
Erickson Air-Crane Inc.
Alliant Techsystems Inc.
Wesco Aircraft Holdings, Inc.
). While Erickson Air-Crane carries a Zacks Rank #1 (Strong Buy),
Alliant Techsystems and Wesco Aircraft hold a Zacks Rank #2
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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