) has received a production contract modification worth $8.7
million from the U.S Navy for the supply of Joint Tactical Terminal
Senior (JTT-Sr) radios.
JTT-Sr is one of the first fielded multi-channel, multi-waveform
software-defined radios that provide critical communication link.
These radios are suitable for the new Common Interactive Broadcast
("CIB") waveform and enclose the latest security, hardware and
The JTT-Sr radios have the capability to receive threat data
rapidly from a variety of national and tactical sensors to joint
service host platforms. The information, circulated over Integrated
Broadcast Service ("IBS") networks, provides surveillance reports
and tracks theater-based tactical situational awareness needs.
Moreover, the radios provide critical ballistic missile defense
support to relay missile detection warnings.
The JTT-Sr demonstrates the long legacy of intelligence
dissemination terminals that the company has been providing to the
military for more than 25 years. Recently, the company had also
upgraded the JTT-Sr needed to meet new security requirements and
slot in the next generation communication waveform at its Largo,
Recently, the company had also received a $125.3 million contract
for modernizing and adding new competence power to an Air Force
early warning radar ("EWR") system from The Missile Defense Agency
("MDA") and the U.S. Air Force. Early warning radar is high-powered
mission-critical and large phased-array radar. Post up gradation,
the EWR will be targeting data that can be used to shoot down
incoming ballistic missiles, besides providing early warning of
missile launches and space surveillance.
Based in Massachusetts, Raytheon Company 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.
Going forward, the company enjoys strong order bookings and order
backlog, an improving balance sheet, growing cash flow and
operational improvements. We expect future growth to be driven by
its focus on ISR unmanned systems, training, cyber security,
Standard Missile-6, Patriot, Zumwalt and Terminal High Altitude
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 #3 Rank (Hold)
that corresponds with our long-term Neutral recommendation on the
stock. Some of its main competitors are
L-3 Communications Holdings Inc.
FLIR Systems, Inc.
FLIR SYSTEMS (FLIR): Free Stock Analysis Report
L-3 COMM HLDGS (LLL): Free Stock Analysis
RAYTHEON CO (RTN): Free Stock Analysis Report
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