Lockheed Martin Corporation (LMT) has received an $84.3 million contract from the U.S. Air Force, under which the company will deliver four weapons systems trainers for aircrew instruction and will also provide program management and engineering services. Basically, the contract is to provide training to people, who maintain and fly the C-130J cargo plane under the Maintenance and Aircrew Training System (MATS) II program.
MATS II complements the original C-130J MATS program, which Lockheed Martin has been managing since 2000. It provides a comprehensive range of training devices and training support services. These training support services include aircrew and maintenance personnel instruction, program operations and engineering services.
In 2014, the Air Mobility Command, Air Combat Command and Air Force Special Operations Command will begin instruction on the weapons systems trainers. The training systems includes the latest simulation technology that takes into account the electronic motion platform, an enhanced visual system and distributed mission operations networking that allows aircrews to train with remote and virtual participants.
Lockheed Martin Corporation is expected to register a stable performance driven by leveraged presence in the Army, Air Force, Navy and IT programs. Moreover, shareholder return will continue to be shored up by the company’s focus on debt repayment, its ongoing share repurchase program and the incremental dividend.
We believe market pessimism is fully accounted in the current valuation, and priced at a discount to both industry peers and the overall market. The company presently retains a short-term Zacks #3 Rank (Hold) that corresponds with our long-term Neutral recommendation on the stock.
Based in Bethesda, Md., Lockheed Martin is a global security company that is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. Some of its main competitors are Raytheon Company (RTN) and The Boeing Company (BA).
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