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Lockheed (LMT) Wins $102M Deal to Support Apache Helicopter

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  • LMT
  • LHX
  • RTX
  • NOC

Lockheed Martin Corp.’s LMT business segment, Missiles and Fire Control (MFC) recently clinched a contract concerning the Modernized Target Acquisition Designation Sight/Pilot Night Vision Sensor (M-TADS/PNVS) performance-based logistics program for Apache combat helicopter. The award has been offered by the U.S. Army Contracting Command, Redstone Arsenal, AL.

Valued at $102.4 million, the contract is expected to get completed by Jul 31, 2024. Per the terms, the MFC unit will manufacture and supply hardware components and spares of Apache’s M-TADS/PNVS.

A Brief Note on the M-TADS/PNVS Systems

The Modernized Target Acquisition Designation Sight/Pilot Night Vision Sensor (M-TADS/PNVS), also known as Arrowhead, is an electro-optical sensor that provides enhanced situational awareness to Apache’s aircrew with greater performance and survivability. It offers long-range, precision engagement and pilotage solutions for missions conducted during the day, night or adverse weather conditions.

What’s Favoring Lockheed Martin?

The rising need for improved military performance, integration of high-performance miniaturized electronic systems and increasing demand for lightweight textiles are driving the growth of the military sensor market. Being a prominent defense contractor in the United States, Lockheed Martin has been winning a number of contracts from the Pentagon, related to sensor systems and their upgrades. The latest contract win is a testament to that.

Growth Prospects

Per Markets and Markets Research, the global military radar market is expected to reach $17.4 billion by 2025 at a CAGR of 4.4% from 2020. Such growth projections for the aforementioned market should benefit prominent radar manufacturers like Lockheed Martin, Raytheon Technologies RTX, L3Harris Technologies LHX and Northrop Grumman NOC.

Raytheon’s product portfolio consists of varied radars like integrated air and missile defense radars, ballistic missile radars, surveillance radars as well as air dominance radars. Radars like AN-SPY 6, AN-TPY-2, APG-79, APG-82 are some of its combat-proven products that enjoy solid demand in the global military radar market.

Raytheon’s third-quarter 2021 adjusted earnings per share (EPS) of $1.26 outpaced the Zacks Consensus Estimate by 17.8%. RTX’s shares have gained 20.5% in the past three years.

L3Harris manufactures combat-proven radars like SPS-48 land-based surveillance radar, AN/APY-11 Multimode radar, Tactical Air Surveillance radar, AN/SPS-48G long-range 3D surveillance radar and many more.

L3Harris’ third-quarter 2021 adjusted earnings came in at $3.21 per share, which surpassed the Zacks Consensus Estimate by 1.6% and also increased 13% from the year-ago quarter. LHX’s shares have the gained 13% in the past year.

Northrop’s broad portfolio of products comprises radars like AN/APG-83 scalable agile beam radar, AN/ASQ-236 Dragon’s eye radar pod as well as AN/APG-81 and AN/APG-71 radars.

Interestingly, Northrop reported third-quarter 2021 earnings of $6.63 per share, which surpassed the Zacks Consensus Estimate by 11.8% and increased 13% year over year. NOC’s shares have gained 27.3% in the past year.

Price Movement and Zacks Rank

Shares of Lockheed Martin have lost 0.1% in the past year compared with the industry's decline of 30.3%.

Zacks Investment Research
Zacks Investment Research

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The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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Lockheed Martin Corporation (LMT) : Free Stock Analysis Report

Northrop Grumman Corporation (NOC) : Free Stock Analysis Report

L3Harris Technologies Inc (LHX) : Free Stock Analysis Report

Raytheon Technologies Corporation (RTX) : Free Stock Analysis Report

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