How Will Lockheed Martin (LMT) Stock React to New $969 Million Contract?
NEW YORK (TheStreet) -- Lockheed Martin Corp. (LMT) - Get Report has been awarded a contract worth about $969 million to build 17 C-130J military transport aircrafts, the Pentagon announced Tuesday, Reuters reports.
The planes are expected to be completed by April 2020.
The aircraft are used for humanitarian relief missions, special operations, aerial refueling, close air support and search and rescue, Reuters noted.
Shares of Lockheed Martin closed at $214.07 on Tuesday afternoon.
Additionally, Lockheed Martin announced on Tuesday that two of the Trident II D5 Fleet Ballistic Missiles the company built for the U.S. Navy completed successful test flights on November 7 and 9.
"The world's most reliable large ballistic missile, the D5 missile has achieved a total of 157 successful test flights since design completion in 1989. The D5 is the sixth in a series of missile generations deployed since the sea-based deterrent program began 60 years ago," the company said in a statement.
Lockheed Martin is a Sunnyvale, CA-based global security and aerospace company.
Separately, TheStreet Ratings team rates LOCKHEED MARTIN CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
We rate LOCKHEED MARTIN CORP (LMT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, solid stock price performance and growth in earnings per share. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- LMT's revenue growth has slightly outpaced the industry average of 0.9%. Since the same quarter one year prior, revenues slightly increased by 3.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Aerospace & Defense industry and the overall market, LOCKHEED MARTIN CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has significantly increased by 53.23% to $1,517.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 16.68%.
- LOCKHEED MARTIN CORP reported flat earnings per share in the most recent quarter. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, LOCKHEED MARTIN CORP increased its bottom line by earning $11.21 versus $9.04 in the prior year. This year, the market expects an improvement in earnings ($11.38 versus $11.21).
- You can view the full analysis from the report here: LMT
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.