Kaman (KAMN) Wing Secures Dual Orders for K-MAX Helicopters
Kaman Corporation’s KAMN business arm — Kaman Aerosystems — recently clinched orders for two additional K-MAX helicopters from Mountain Blade Runner Helicopters and St. Louis Helicopter LLC. Furthermore, considering the existing robust demand-side scenario, the company has approved the Lot III production of its state-of-the-art medium lift workhorse aircraft.
Inside the Headlines
Per the deal, Mountain Blade Runner Helicopters will soon become a proud operator of Kaman’s K-MAX helicopter. This premium aircraft will support the company’s high-altitude firefighting missions and external-lift operations. Notably, Mountain Blade Runner Helicopters stated that inclusion of K-MAX to its existing fleet of AS350B3e helicopters will aid in strengthening the company’s overall lift capability over the long run.
Along with Mountain Blade Runner Helicopters, St. Louis Helicopter of Sellersburg will also enlarge its fleet with the inclusion of K-MAX. The company noted that the aircraft will be used to conduct its agricultural aerial solutions like fertilizing and seeding. St. Louis Helicopter stated that K-MAX will not only improve its existing lift capacity but also make the company’s operations more cost effective. The company has inked a leasing agreement with Rainier Heli International Inc. (Rainier) to finance its K-MAX aircraft buyout. Earlier this year, Kaman and Rainier signed a deal, through which Rainer will propose K-MAX leasing solutions to its customers.
K-MAX is Kaman’s premium single-seat, single-engine, and low-maintenance helicopter. The aircraft is optimized for different external load operations, includes specialized features like counter-rotating rotor system, and is designed especially for vertical reference flight. Notably, the aircraft can lift weight up to 6,000 pounds. Kaman will deliver the K-MAX aircrafts to its two new clients in the upcoming months.
Zacks Rank and Price Performance
Kaman currently carries a Zacks Rank #3 (Hold). The company is poised to grow on the back of strength in Distribution segment’s business, mergers & acquisitions, deleveraging initiatives and new contract wins. Nonetheless, a weakening Aerospace segment remains a cause of concern. Moreover, over the past month, the stock has lost 7.8%, as against 2.8% growth recorded by the industry it belongs to.
Stocks to Consider
Some better-ranked stocks in the same space are listed below:
Currently, DXP Enterprises, Inc. DXPE sports a Zacks Rank #1 (Strong Buy). The company pulled off a positive average earnings surprise of 112.62% in the past four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Luxfer Holdings PLC LXFR also flaunts a Zacks Rank of 1, at present. The company generated a positive average earnings surprise of 24.27% in the trailing four quarters.
Applied Industrial Technologies, Inc. AIT holds a Zacks Rank #2 (Buy), currently. The company delivered a positive average earnings surprise of 11.67% in the preceding four quarters.
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