Raytheon Secures $22M Deal to Support MALD Flight Vehicle
Raytheon Technologies Corporation’s RTX Missiles and Defense (RMB) unit has recently secured a $21.8-million contract for providing sustainment services associated with the ADM-160B, ADM-160C and C-1 Miniature Air Launched Decoy (MALD) Jammer. The contract was awarded by the Air Force Life Cycle Management Center, Robins Air Force Base, GA.
Work related to the deal will be performed in Tucson, AZ, and is expected to be completed by May 14, 2023.
A Brief Note on MALD
The Miniature Air Launched Decoy (MALD) is a small unmanned air-launched flight vehicle designed to protect U.S. fighters and bombers from sophisticated netted air defenses. It is currently used by the U.S. Air Force (USAF) and the U.S. Navy.
Merger With United Technologies to Create Strong Impact
In April 2020, Raytheon Company completed its merger with United Technologies to form Raytheon Technologies, thus creating the world's most advanced aerospace and defense systems provider. The combined entity expects to introduce breakthrough technologies at an accelerated pace across high-value areas, such as hypersonics, directed energy, avionics and cybersecurity, in the days to come. The combined expertise will also be instrumental in providing advanced associated services for various weapon systems, including missiles. The merger has evidently set a more robust foundation for the new company to acquire major contracts, similar to the latest one.
What’s Favoring Raytheon?
Increasing geopolitical tensions along with a rise in terrorism across the globe are prompting nations to strengthen their defense systems manifold. With rapid technological upgrades, missile defense is steadily emerging to play a pivotal role in a nation’s defense strategy. With the United States being the world’s largest weapons supplier, it is a golden era for premier defense contractors like Raytheon Technologies.
Further, the U.S. government’s fiscal 2021 defense budget proposal includes a significant spending plan of $20.3 billion on missile defense, 49.3% higher than the previous budget plan. Evidently, such an increased spending provision should usher in more contracts for Raytheon Technologies’ major missile programs.
Shares of Raytheon Technologies have lost about 52% in a year compared with the industry’s decline of 37.7%.
Zacks Rank & Stocks to Consider
Raytheon Technologies currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A few better-ranked stocks in the same sector are Ducommun Incorporated DCO, Teledyne Technologies Incorporated TDY and Aerojet Rocketdyne Holdings AJRD, each carrying a Zacks Rank #2 (Buy).
Ducommun delivered an average four-quarter earnings beat of 60.22%. The Zacks Consensus Estimate for 2020 earnings has risen 18.5% to $2.18 per share in the past 90 days.
Teledyne Technologies delivered an average four-quarter earnings beat of 11.70%. The Zacks Consensus Estimate for 2020 earnings has risen 4.8% to $9.75 per share in the past 90 days.
Aerojet Rocketdyne delivered an earnings surprise of 9.30% in the last reported quarter. The Zacks Consensus Estimate for 2020 earnings has risen 2.3% to $1.80 per share in the past 90 days.
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