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Boeing (BA) Wins $94M U.S. Navy Contract for F/A-18 Hornet

The Boeing Co. BA has won a modification contract, worth $93.8 million, from the U.S. Navy to exercise an option for depot-level maintenance and sustainment of the F/A-18 A/B/C/D aircraft. Contracting activity is Naval Air Systems Command, Patuxent River, MD.

Per the contract, Boeing will execute High Flight Hour (HFH) inspections, HFH recurring inspections, supplementary inspections, alterations, and associated engineering.

Work is scheduled to be complete by Dec 2016 and will be performed in Jacksonville, FL.

Originally designed and built by McDonnell-Douglas, prior to its merger with Boeing, the F/A-18 Hornet is a double-engine, high-speed, all-weather fighter aircraft that can serve as both a fighter and an attack aircraft.

We note that Boeing witnesses a steady flow of contracts from the U.S. Department of Defense. The company is one of the major players in the defense business. The company’s defense business stands out among its peers by virtue of its broadly diversified programs, strong order bookings and order backlog.

Boeing’s Defense, Space & Security segment witnessed approximately 3% year-over-year growth in fourth-quarter 2015 revenues. Quarterly operating margin also expanded 30 basis points to 12.4%. Backlog at the segment was $58 billion at the end of 2015, of which 40% comprised orders from international clients.

Zacks Rank & Key Picks

Boeing currently has a Zacks Rank #3 (Hold). A better-ranked stock in the aerospace and defense industry is Huntington Ingalls Industries, Inc. HII, with a Zacks Rank #2 (Buy). Investors interested in the aerospace and defense equipment industry may also consider HEICO Corporation HEI and Spirit AeroSystems Holdings, Inc. SPR. Both the stocks sport a Zacks Rank #1 (Strong Buy).

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BOEING CO (BA): Free Stock Analysis Report
 
SPIRIT AEROSYS (SPR): Free Stock Analysis Report
 
HEICO CORP (HEI): Free Stock Analysis Report
 
HUNTINGTON INGL (HII): Free Stock Analysis Report
 
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