The largest US defense contractor, Lockheed Martin Corporation (LMT) won a $119 million contract from the U.S. Navy for the demonstration of its designs for new radar meant to enhance the U.S. Navy’s capabilities against advanced anti-ship and ballistic missile threats.
The Air and Missile Defense Radar (AMDR) can provide volume search, tracking, ballistic missile defense discrimination and missile communications. Lockheed was one of three market players, including Northrop Grumman Corp. (NOC) and Raytheon Co. (RTN), who were chosen to demonstrate their designs for the AMDR S-band radar and the system’s controller.
Lockheed Martin is the largest provider of IT services, systems integration, and training to the U.S. government. Apart from serving the Department of Defense and other federal agencies, the company derives its businesses from foreign governments as well as from commercial sales of its products, services and platforms.
The future prospects of Lockheed Martin, to a large extent, depend upon defense spending, and we believe the company stands well positioned to benefit from higher defense outlays. In addition, the company’s focus on debt repayment and share buyback is encouraging and will continue to improve the shareholder return.
However, political uncertainty makes future defense budgets vulnerable to cutbacks. Moreover, execution risk of major programs and higher pension liability remains the primary cause of concern. Major competitors of the company include Boeing Co. (BA), Northrop Grumman Corporation, and Raytheon Co.
We currently maintain a Zacks #3 Rank (‘Hold’) and a long-term Neutral recommendation on the stock.
The Air and Missile Defense Radar (AMDR) can provide volume search, tracking, ballistic missile defense discrimination and missile communications. Lockheed was one of three market players, including Northrop Grumman Corp. (NOC) and Raytheon Co. (RTN), who were chosen to demonstrate their designs for the AMDR S-band radar and the system’s controller.
Lockheed Martin is the largest provider of IT services, systems integration, and training to the U.S. government. Apart from serving the Department of Defense and other federal agencies, the company derives its businesses from foreign governments as well as from commercial sales of its products, services and platforms.
The future prospects of Lockheed Martin, to a large extent, depend upon defense spending, and we believe the company stands well positioned to benefit from higher defense outlays. In addition, the company’s focus on debt repayment and share buyback is encouraging and will continue to improve the shareholder return.
However, political uncertainty makes future defense budgets vulnerable to cutbacks. Moreover, execution risk of major programs and higher pension liability remains the primary cause of concern. Major competitors of the company include Boeing Co. (BA), Northrop Grumman Corporation, and Raytheon Co.
We currently maintain a Zacks #3 Rank (‘Hold’) and a long-term Neutral recommendation on the stock.
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