Lockheed Inks $320M Air Force Deal

Zacks

Lockheed Martin Corporation (LMT) has clinched a $320 million contract from the Air Force to provide enhanced communications reliability, survivability, and information capabilities.

Per the contract, Lockheed Martin will run the Air Force’s Network Command Center, an IT communications network used by Air Force personnel in Washington, DC. The company will provide the network center with enterprise applications and desktop support and projects, plans and engineering services. It comprises desktop support, enterprise applications, plans, projects and engineering services, and National Military Command Center (:NMCC) support.

Bethesda, MD-based Lockheed Martin is a security and aerospace company engaged in the research, design, development, manufacture, and integration of defense products. One of the basic parameters is innovation, which allows Lockheed to stay ahead in the race. This guarantees a steady inflow of follow-on orders from a leveraged presence in the Army, Air Force, Navy and IT programs.

So the threat of sequestration notwithstanding, the diverse product offerings, strong program execution and cost reduction measures will help the company to sustain its profitability. Lockheed Martin has significant upside potential based on the Obama administration’s focus on ISR, unmanned systems, force protection, cyber security, and missile defense.

The company secured a series of international contracts which will likely boost Lockheed Martin’s growth opportunities. Recently, the joint establishment of Lockheed Martin and Northrop Grumman Corp. (NOC), LONGBOW Limited Liability Company, received a $90 million contract from Saudi Arabia for the supply of LONGBOW Fire Control Radars (FCRs) for their AH-64 Apache Attack Helicopters.

Lockheed currently retains a Zacks Rank #3 (Hold). Other companies in the industry worth considering are Erickson Air-Crane Inc. (EAC) and The Boeing Company (BA). Erickson Air-Crane presently has a Zacks Rank #1 (Strong Buy) while Boeing holds a Zacks Rank # 2 (Buy).

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