Lockheed Martin Wins $101.9M DoD Contract - Analyst Blog

Lockheed Martin Aeronautics Company, a key division of Lockheed Martin Corporation LMT, received a modification contract worth $101.9 million from the U.S. Department of Defense (DoD) under the Foreign Military Sales FMS program.

Per the contract, the company will provide non-recurring engineering and maintenance support for mission systems software and autonomic logistics development of the F-35A Conventional Take Off and Landing Air System for the government of Israel. Lockheed Martin will also provide autonomic logistics hardware to support Israeli pilot training. Work under this contract will be performed in Fort Worth, TX and is scheduled to be completed by Apr 2015.

The Aeronautics business segment includes the company's largest program – the F-35 fighter jet. Lockheed expects rising F-35 aircraft deliveries to allied countries besides its wide uptake in the U.S. Armed Forces. Net sales from the F-35 program comprised approximately 16% of total consolidated net sales for the first quarter 2014.

The F-35 continues to receive strong support from Congress and the administration despite persistent threats of defense budget cuts. The company expects to generate 20% of total revenues from international sales on the back of strong orders for its F-35 program in 2014.

Recently, the company received another sizable contract of $12.4 billion from the government of Australia. Per the contract, the company will supply 58 F-35s with first delivery by 2018.

Currently, Lockheed Martin holds a Zacks Rank #3 (Hold). Other well-ranked defense players include The Boeing Co. BA, Embraer SA ERJ and Alliant Techsystems Inc. ATK. All of these stocks hold a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
ALLIANT TECHSYS ATK: Free Stock Analysis Report
 
BOEING CO BA: Free Stock Analysis Report
 
EMBRAER AIR-ADR ERJ: Free Stock Analysis Report
 
LOCKHEED MARTIN LMT: Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research