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Lockheed Martin (LMT) Wins Defense Contracts for $188.3M

A major player in the aerospace & defense space Lockheed Martin Corporation LMT received a couple of defense contracts one each from Defense Logistics Agency and U.S. Navy. While the contract from Defense Logistics Agency was worth $138.8 million, the Navy contract was for $49.5 million. The wide range of defense products offered by Lockheed keeps the gates open for a steady flow of awards.

Per the Defense Logistics Agency’s contract, Lockheed will be responsible for the broad supply chain management and logistical support of spare parts and industrial hardware relating to the maintenance, overhaul, and repair missions of the Air Force’s air logistics complexes. This is an 18-month industrial product support vendor contract under which support will be provided to the Air Force base in Maryland, Georgia, Oklahoma and Utah.

The Air Force plays a critical role in the country’s defense. It helps to respond quickly in difficult situations and so it’s absolutely essential to keep airplanes ready for combat and other missions. Lockheed will keep the air logistics complexes fully equipped to provide repair and maintenance work for different airplanes used in defense activities.

Per the Navy deal, Lockheed will be entrusted to procure MK 39 Mod 2 expendable mobile antisubmarine warfare (“ASW”) training targets (“EMATT”).  The MK 39 Mod 2 EMATT is the Navy’s open ocean ASW training target.  

Lockheed Martin is a major player in the U.S. aerospace and defense space. The company won orders worth $50.2 billion during 2015 and has already received contracts worth a few billion dollars in the first quarter of 2016. These new orders will further boost the backlog of the company, which was $99.6 billion at the end of fourth quarter 2015. Lockheed expects its 2016 earnings per share to be in the range of $11.45 to $11.75.

Lockheed Martin currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space are Huntington Ingalls Industries, Inc. HII and Rockwell Collins Inc.COL, sporting a Zacks Rank # 1(Strong Buy), and Spirit AeroSystems Holdings, Inc. SPR, carrying a Zacks Rank #2 (Buy)

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LOCKHEED MARTIN (LMT): Free Stock Analysis Report
 
ROCKWELL COLLIN (COL): Free Stock Analysis Report
 
SPIRIT AEROSYS (SPR): Free Stock Analysis Report
 
HUNTINGTON INGL (HII): Free Stock Analysis Report
 
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