Lockheed Martin Corporation 's LMT aeronautics division, Lockheed Martin Aeronautics Co., has secured a modification contract from the Air Force Life Cycle Management Center, UT, for the sustainment of previously delivered F-22 aircraft. The contract is worth $22.3 million.
Lockheed Martin will provide follow-on agile sustainment services as per the F-22 Raptor's annual requirements.
Work will be executed in Utah and Georgia with expected completion by Dec 31, 2017.
A Brief Note on F-22
The Lockheed Martin F-22 Raptor is the fifth-generation , single-seat, twin-engine , all-weather stealth tactical fighter aircraft that boasts a unique combination of stealth, speed, agility and situational awareness, along with lethal long-range air-to-air and air-to-ground weaponry.
However, high development costs, ban on exports, and development of the more versatile F-35 aircraft led to the discontinuation of F-22 production.
Lockheed Martin's stock has improved about 13.5% in the last one year, outperforming the Zacks categorized Aerospace/Defense industry's gain of 10.3%. This could be because the company continues to witness a steady flow of contracts from the Pentagon and other international customers.
Lockheed Martin is the largest U.S. defense contractor with a platform-centric focus that guarantees a regular inflow of follow-on orders from a leveraged presence in the U.S. Army, Air Force, Navy and IT programs.
During the third quarter, Lockheed Martin raised its ownership interest in the AWE Management Limited (AWE) venture, which operates the UK's nuclear deterrent program, by 18%. As a result, the company currently holds a 51% controlling interest in the AWE venture. Looking forward, management expects this venture to contribute $400 million to sales in 2016 and around $1-$1.1 billion in 2017.
Zacks Rank & Key Picks
On an average, Engility has delivered a positive earnings surprise of 23.19% in the trailing four quarters. The company's 2016 earnings estimates increased 13.4% over the last 60 days. Engility sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Leidos Holdings carries a Zacks Rank #2 (Buy). The company's 2016 earnings estimates increased 9.9% over the last 60 days. On an average, the company has delivered a positive earnings surprise of 12.20% in the trailing four quarters.
General Dynamics, a Zacks Rank #2 stock, delivered a positive earnings surprise of 5.55% in the trailing four quarters. The company's 2016 earnings estimates increased from $9.77 to $9.79 over the last 60 days.
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