Raytheon Company RTN recently won a contract from the U.S. Army to provide support services for the AN/TPN-31 Air Traffic Navigation, Integration and Coordination system (ATNAVICS) and AN/FPN-67 Fixed Base Precision Approach Radar (FBPAR).
Details of the Contract
The contract is valued at $31.4 million. It was awarded by the Army Contracting Command, Aberdeen Proving Ground, MD.
Work is scheduled to be completed by Mar 31, 2020 and will be carried out in Marlborough, MA. The contract will use fiscal 2017 operations and maintenance (Army) funds.
A Brief Note on ATNAVICS and FBPAR
ATNAVICS is a wholly self-contained system, incorporated on two High Mobility, Multi-purpose, Wheeled Vehicles (HMMWVs), which provides quick response air traffic control services at Army airfields and tactical landing sites. The system includes a S-band air surveillance radar, L-band secondary surveillance radar/identification friend or foe, an X-band precision approach radar, and Raytheon's AutoTrac air traffic management system. Additionally, it provides full supervision to 25 nautical miles and precision approach coverage to 10 nautical miles in all weather conditions.
The AN/FPN-67 FBPAR provides U.S. Army air traffic controllers with a verified, cost-effective tool that offers precise and reliable information regarding aircraft position to assist in landing operations in adverse weather and low visibility conditions. It is like the ATNAVICS precision approach radar and is expected to be set up in permanent locations at Army airfields. While, the AN/TPN-31 is a tactical system, the AN/FPN-67 is a fixed-base system.
Raytheon is one of the best-positioned large-cap defense players due to its non-platform-centric focus. It is a technology leader focusing on defense, homeland security and other government markets throughout the world. The company has been heavily investing in technological upgrades. It aims to provide the best-in-class security solutions to the U.S. Department of Defense.
The company enjoys steady flow of contracts from the Pentagon. In February, Raytheon secured a foreign military sales (FMS) contract worth $1.07 billion from the U.S. Air Force. Under the terms of the deal, the company will provide an early warning radar system to the Qatar government, which will be incorporated into the nation’s integrated air and missile defense enterprise. (Read more: Raytheon Wins FMS Deal for Supply of Radar Systems to Qatar)
In the same month, Raytheon won a foreign military sales (“FMS”) contract from the U.S. Army to provide engineering services for the PATRIOT weapon systems program. The contract was valued at $202.2 million.
Raytheon’s stock has gained about 24.6% in the last twelve months, outperforming the Zacks categorized Aerospace-Defense Equipment industry’s gain of 18%. This could be because Raytheon is one of the best-positioned large-cap defense players due to its non-platform-centric focus. Rising demand from the Gulf countries and the Asia Pacific, and growth in FMS contracts added to the positives. The company also poses strong competition to its peers, including Ducommun Incorporated DCO, Curtiss-Wright Corporation CW and Aerojet Rocketdyne Holdings, Inc. AJRD.
Raytheon currently has 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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