Boeing Wins $134M U.S. Air Force Contract for E-4B fleet
The Boeing Co. BA won an indefinite-delivery/indefinite-quantity contract, worth $134 million, for providing sustainment support for its E-4B fleet. The contracting activity is Air Force Life Cycle Management Center, Tinker Air Force Base, OK.
Per the contract, Boeing will provide program and supply chain management, field service representatives, aircraft depot and engine maintenance and overhauls.
Work is scheduled to be complete by Dec 30, 2016 and will be performed in Oklahoma City and San Antonio, TX.
Apart from this, Boeing secured four contracts from the U.S. Navy totaling $63.8 million. One of these contracts, worth $22.8 million, involves the procurement of F/A-18E/F and EA-18G aircrew training device concurrency Technical Directive List – 5 H12 System Configuration Set/Operational Flight Program. Work is scheduled to be completed in Apr 2018. The contracting activity is Naval Air Warfare Center Training Systems Division, Orlando, FL.
Boeing is one of the major players in the defense business. The company’s defense segment stands out among its peers by virtue of its broadly diversified programs, strong order bookings and order backlog. The company has also reshaped its defense portfolio from time to time. In Feb 2015, it created a new organization – BDS Development – as part of the restructuring of its defense and space business. The move is expected to enhance product efficiency and lower costs for Boeing’s defense customers in addition to maintaining delivery schedules.
We remind investors that the company recently reported third-quarter results wherein its earnings beat the Zacks Consensus Estimate by 13.5% and increased 18% year over year. Revenues also improved 9% year over year. It also lifted its 2015 EPS guidance following its third-quarter upside.
Zacks Rank
Boeing currently has a Zacks Rank #2 (Buy). Other favorably placed stocks in the aerospace and defense sector are Leidos Holdings, Inc. LDOS, General Dynamics Corporation GD and TransDigm Group Incorporated TDG. While Leidos and TransDigm sport a Zacks Rank #1 (Strong Buy), General Dynamics carries the same rank as Boeing.
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