Stock Market News & Stocks to Watch from StraightStocks » Lockheed Martin Corporation

Raytheon Wins Air Force Contract – Analyst Blog

Zacks Market Commentaries — Tue, 09 Mar 2010 15:37:35 +0000

Raytheon Company (RTN) has been awarded an $886 million U.S. Air Force contract to develop a new aspect of the Global Positioning System (GPS), namely the Advanced Control Segment (OCX), which will improve the accuracy of information from GPS satellites.

Raytheon is also tasked to improve anti-jam capabilities and improved security, accuracy and reliability of the system. It will be based on a modern service-oriented architecture to integrate government and industry open-system standards.

Raytheon brings more than four decades of high-availability precision satellite command and control systems experience. The company will supervise a team of contractors to make expansions and improvements in accuracy to the GPS system. The team of contractors includes Boeing Company (BA), Braxton Technologies, Infinity Systems Engineering and the Jet Propulsion Laboratory.

Raytheon ended fiscal 2009 with an order backlog of $36.9 billion compared to $38.9 billion at the end of fiscal 2008. Funded backlog as of year-end fiscal 2009 stood at $23.5 billion.

Raytheon is one of the largest aerospace and defense companies in the U.S. It provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems, as well as a broad range of mission support services.

We continue to view Raytheon as one of the best positioned companies among the large-cap defense primes due to its non-platform-centric focus, strong order bookings and order backlog, healthy cash flow generation and focus on shareholder value. We maintain our market Neutral recommendation on the shares. Defense contractors with significant exposure to high-cost platform programs include Lockheed Martin Corporation (LMT), Northrop Grumman Corporation (NOC) and General Dynamics Corporation (GD).

Read the full analyst report on "RTN"
Read the full analyst report on "BA"
Read the full analyst report on "LMT"
Read the full analyst report on "NOC"
Read the full analyst report on "GD"
Zacks Investment Research

Boeing Wins $1.6B Turkish Deal – Analyst Blog

Zacks Market Commentaries — Mon, 08 Mar 2010 17:42:07 +0000

Boeing Company (BA) has won a $1.6 billion order from Turkish Airlines. The company will supply 20 airplanes of the 737 series. Half of this would be 737-800s and the other half 737-900ER (Extended Range) airplanes.

Based in Istanbul, Turkish Airlines currently operates a fleet of 66 Boeing airplanes, including 58 Next-Generation 737s. It ferries approximately 25 million passengers a year, with direct flights to 120 international and 37 domestic destinations.

Boeing’s 737-900ER airplane is the newest member of the 737 family, combining aerodynamic and other design changes to accommodate up to 215 passengers comfortably while retaining the flexibility and efficiency of the Next-Generation 737 family. The airplane is pitted against Airbus’ A321 series.

Boeing is also the largest NASA contractor. Non-airplane products include helicopters, electronic and defense systems, missiles, satellites, rocket engines, launch vehicles, and advanced information and communication systems.

Boeing is one of the best-positioned companies among its defense peers by virtue of its balanced exposure to commercial aircraft and defense equipment. Peers such as Lockheed Martin Corporation (LMT) and Northrop Grumman Corporation (NOC) dabble only in defense equipment.

Going forward, we believe a $316 billion order backlog, strong order booking and a globally diversified customer base will help maintain Boeing’s growth momentum. However, the momentum could see meet headwinds from a bearish commercial aerospace market, fears over growth in defense spending and delays in the launch of 787. Thus we are Neutral on the stock at this time.

Read the full analyst report on "BA"
Read the full analyst report on "LMT"
Read the full analyst report on "NOC"
Zacks Investment Research

General Dynamics Ups Dividend – Analyst Blog

Zacks Market Commentaries — Thu, 04 Mar 2010 19:14:40 +0000

General Dynamics (GD) raised its quarterly dividend to 42 cents per share on the company's common stock, payable May 7, 2010, to shareholders of record as on April 9. The dividend represents a 10.5% increase on the previous quarterly dividend of 38 cents.

General Dynamics is a well-run company that is likely to continue to deliver on expectations driven by strong revenue growth, margin expansion and cash flow generation. Strong defense outlays should further improve the company’s outlook for shareholders while an increasing funded backlog and an improving balance sheet are the other positive factors.

The company has one of the strongest balance sheets among its peers with a low debt-to-capitalization of 20.3% (Zacks industry average was 90.6%) for fiscal 2009. General Dynamics’ free cash flow from operations also reached $2.5 billion.

Management also returns a substantial portion of its free cash flow to shareholders through share repurchases and incremental dividend. During fiscal 2009, the company repurchased 3.6 million shares and has a repurchase authorization for 9.4 million shares pending.

General Dynamics, headquartered in Falls Church, Virginia, is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. The company operates through four business segments − Information Systems & Technology, Combat Systems, Marine Systems, and Aerospace.

General Dynamics operates through four business segments − Information Systems & Technology, Combat Systems, Marine Systems, and Aerospace. The major competitors of the company are Northrop Grumman Corporation (NOC), Lockheed Martin Corporation (LMT), EMBRAER - Empresa Brasileira de Aeronáutica S.A. (ERJ) and Force Protection Inc. (FRPT).
Read the full analyst report on "GD"
Read the full analyst report on "NOC"
Read the full analyst report on "LMT"
Read the full analyst report on "ERJ"
Read the full analyst report on "FRPT"
Zacks Investment Research

Zacks Analyst Blog Highlights: Coca Cola Company, Boeing Company, General Electric Company, Lockheed Martin Corporation and Northrop Grumman Corporation – Press Releases

Zacks Market Commentaries — Wed, 10 Feb 2010 12:29:52 +0000

For Immediate Release

Chicago, IL – February 10, 2010 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Coca Cola Company (KO), Boeing Company (BA), General Electric Company (GE), Lockheed Martin Corporation (LMT) and Northrop Grumman Corporation (NOC).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Tuesday’s Analyst Blog:

Coca Cola Reports In Line

Coca Cola Company (KO) reported fourth quarter 2009 results with earnings of 66 cents per share, which was in line with the Zacks Consensus Estimate. Earnings were up 3.0% year-over-year.

Net revenues increased 5.4% year-over-year during the quarter, due to a 5% positive impact from currency translation and 1% increase in concentrate sales which were partially offset by a 1% impact from pricing and mix.

Worldwide unit case volume increased 5% in the quarter, aided by a 6% improvement in international unit case volume and a 4% growth in Coca Cola, its trademark brand. The emerging markets of China and India grew an impressive 29% and 20%, respectively.

France also reported a strong growth of 12% during the fourth quarter. In addition, strong unit case volume growth was observed in other key markets including Brazil, Mexico and Germany. Europe posted a 1% volume growth, while North American volume declined 1%.

Boeing Progressing on 747-8

Boeing launched the airplane on Nov 14, 2005, with firm orders for 18 747-8 Freighters: 10 from Cargolux of Luxembourg and eight from Nippon Cargo Airlines of Japan. Till date, Boeing has secured 108 orders for the 747-8. The customers are a varied mix of airlines like AirBridgeCargo Airlines, Atlas Air, Cathay Pacific, Dubai Aerospace Enterprise, Emirates SkyCargo, Guggenheim and Korean Air.

Headquartered in Chicago, Boeing is the world’s largest manufacturer of commercial jet liners and military aerospace products (based on total sales). Boeing designs and produces commercial airplanes, defense systems, and civil and defense space systems. It is also the largest NASA contractor. Non-airplane products include helicopters, electronic and defense systems, missiles, satellites, rocket engines, launch vehicles, and advanced information and communication systems.

Boeing is one of the best-positioned companies among its defense peers due to its balanced exposure to commercial aircraft and defense equipment. Defense peers like Lockheed Martin Corporation (LMT) and Northrop Grumman Corporation (NOC) dabble only in defense equipment.

Going forward we believe Boeing’s $316 billion order backlog, strong order booking, stable cash flow generation and a globally diversified customer base will help maintain the growth momentum. However, a bearish commercial aerospace market, apprehension over growth in defense spending, and delays in the launch of the 787 series jetliner will affect Boeing’s performance in the near term.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

Zacks Investment Research

Boeing Progressing on 747-8 – Analyst Blog

Zacks Market Commentaries — Tue, 09 Feb 2010 18:55:05 +0000

Boeing Company (BA) successfully completed the first test flight of its long-in-the-making 747-8 Freighter. The 747-8 Freighter is the new, high-capacity 747 that brings the benefits of low operating costs and best economics in any freighter to cargo operators. The 747-8 is powered by four General Electric Company’s (GE) GEnx-2B engines. The airplane is 250 feet, 2 inches (76.3 m) long, which is 18 feet, 4 inches (5.6 m) longer than the 747-400 Freighter. The stretch provides customers with 16% more revenue cargo volume compared to its predecessor. That translates to an additional four main-deck pallets and three lower-hold pallets.

Boeing launched the airplane on Nov 14, 2005, with firm orders for 18 747-8 Freighters: 10 from Cargolux of Luxembourg and eight from Nippon Cargo Airlines of Japan. Till date, Boeing has secured 108 orders for the 747-8. The customers are a varied mix of airlines like AirBridgeCargo Airlines, Atlas Air, Cathay Pacific, Dubai Aerospace Enterprise, Emirates SkyCargo, Guggenheim and Korean Air.

Headquartered in Chicago, Boeing is the world’s largest manufacturer of commercial jet liners and military aerospace products (based on total sales). Boeing designs and produces commercial airplanes, defense systems, and civil and defense space systems. It is also the largest NASA contractor. Non-airplane products include helicopters, electronic and defense systems, missiles, satellites, rocket engines, launch vehicles, and advanced information and communication systems.

Boeing is one of the best-positioned companies among its defense peers due to its balanced exposure to commercial aircraft and defense equipment. Defense peers like Lockheed Martin Corporation (LMT) and Northrop Grumman Corporation (NOC) dabble only in defense equipment.

Going forward we believe Boeing’s $316 billion order backlog, strong order booking, stable cash flow generation and a globally diversified customer base will help maintain the growth momentum. However, a bearish commercial aerospace market, apprehension over growth in defense spending, and delays in the launch of the 787 series jetliner will affect Boeing’s performance in the near term.
Read the full analyst report on "BA"
Read the full analyst report on "GE"
Read the full analyst report on "LMT"
Read the full analyst report on "NOC"
Zacks Investment Research

LMT Gets Follow-on Contract – Analyst Blog

Zacks Market Commentaries — Tue, 02 Feb 2010 18:44:17 +0000

Lockheed Martin Corporation (LMT) won a $59 million contract from the U.S. Air Force for additional Sniper advanced targeting pods. The award expands a contract initially awarded in Sep 2009, raising the total value of the contract to $95 million.

Lockheed has sold more than 650 aircraft weapon pods, which provide aerial cover for troops on the ground. The pods have been deployed on Air Force F-15, F-16, A-10 and B-1 aircraft and are now the most widely used targeting pod.

Lockheed Martin remains a key player within the military space and continues to benefit from strong defense spending. The company’s customer base includes both the U.S. and foreign governments and other commercial buyers. Lockheed’s traditional defense focus appears strong, with increasing interest from domestic and international customers. In addition, management intends to explore strong business opportunities beyond the traditional defense market, specifically in the areas of civil, governmental and commercial space businesses. The company mainly competes with Boeing Company (BA), General Dynamics Corporation (GD) and Northrop Grumman Corporation (NOC).

Going forward, we believe Lockheed Martin has significant upside potential based on strong defense outlays throughout 2010–11, above-industry average return-on-invested-capital and expanding product lines. However, these are offset by risks related to key projects execution, fate of high cost platform programs, lower top-line results in the Aeronautics segment, higher pension liability and a lower number of government satellite programs. We maintain our market Neutral recommendation on the Zacks #3 Rank ('hold') stock.
Read the full analyst report on "LMT"
Read the full analyst report on "BA"
Read the full analyst report on "GD"
Read the full analyst report on "NOC"
Zacks Investment Research

General Dynamics Wins Navy Contract – Analyst Blog

Zacks Market Commentaries — Mon, 01 Feb 2010 16:31:24 +0000

General Dynamics Corporation’s (GD) wholly owned subsidiary General Dynamics Electric Boat has won a $23.7 million contract modification from the U.S. Navy to prepare for the post-shakedown availability (PSA) on the nuclear submarine New Hampshire (SSN-778).

Work on the contract is expected to begin in February 2010. General Dynamics estimates up to 800 employees to be engaged in the project, which is scheduled for completion in September 2010.

New Hampshire, the fifth ship of the Virginia Class, was delivered to the Navy in August 2008. Electric Boat and its construction teammate, Northrop Grumman Corporation (NOC), have received contracts to produce a total of 18 Virginia-class submarines. A total of 30 ships have been planned.

General Dynamics’ total backlog was $65.5 billion at the end of fiscal 2009, reflecting an increase mainly in both Aerospace and Combat Systems segments.

General Dynamics, headquartered in Falls Church, Virginia, is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. The company operates through four business segments − Information Systems & Technology, Combat Systems, Marine Systems, and Aerospace. Its major competitors are Lockheed Martin Corporation (LMT), Raytheon Company (RTN) and Force Protection Inc. (FRPT).

General Dynamics is a well-run company that is likely to continue to deliver on expectations driven by a strong revenue growth, margin expansion and cash flow generation. Strong defense outlays should further improve the company’s outlook for shareholders while an increasing funded backlog and an improving balance sheet are additional positive factors. The Zacks Consensus Estimate on the company’s earnings for the first quarter is currently pegged at $1.59 per share, and has been stable for some time.

Read the full analyst report on "GD"
Read the full analyst report on "NOC"
Read the full analyst report on "LMT"
Read the full analyst report on "RTN"
Read the full analyst report on "FRPT"
Zacks Investment Research

Lockheed Shoots Past Estimate – Analyst Blog

Zacks Market Commentaries — Thu, 28 Jan 2010 20:11:51 +0000

Before markets opened today, Lockheed Martin Corporation (LMT) reported strong fourth quarter fiscal 2009 results and raised its fiscal outlook. In the reported quarter with EPS of $2.17, the company beat both the Zacks Consensus Estimate and the year-ago EPS of $1.98 and $2.05, respectively.

However, Lockheed Martin’s net earnings increased only $4 million to $827 million in the reported quarter compared to $823 million in the year-ago quarter. The upside in EPS was fueled to a large extent by lower outstanding shares, which decreased to 381.9 million from 400.7 million in the year-ago quarter.

In a reversal of fortune, pension accounting adjustment negated $114 million from the quarter while in the year-ago quarter this adjustment had added $32 million to earnings. The spike in pension liability was due to the lower value of the company’s retiree fund.

Behind the Headline Numbers

With $12.5 billion quarterly revenue, Lockheed Martin beat the year-ago result of $11.1 billion by 13%. The upside in sales year over year came from higher numbers across the board, but especially from the Space Systems segment (SS) (28%). Of the rest, Aeronautics and Electronics Systems (ES) grew a respectable 13% and 12% year-over-year, respectively. However, the Information Systems & Global Services segment (IS&GS) grew only marginally -- 2% year-over-year. Fiscal 2009 revenues also increased 6% to $45.2 billion from $42.7 billion in fiscal 2008.

Operating profit also rose 13% year-over-year to $1.4 billion in the reported quarter. The growth was seen across the board with the exception of the IS&GS segment, which fell 10% year-over-year. Of the rest SS segment rose 43% while Aeronautics and ES segment grew 15% and 11%, respectively. SS operating profit escalated due to higher volume and improved performance on government satellite programs.

Lockheed Martin ended fiscal 2009 with cash and cash equivalents of $2.4 billion compared to $2.2 billion at year-end fiscal 2008. The company generated $3.2 billion of cash in operating activities at the end of fiscal 2009, compared to $4.4 billion in cash generated in fiscal 2008. Long-term debt increased to $5.1 billion at the end of fiscal 2009 from $3.6 billion at the end of fiscal 2008.

Lockheed Martin finished fiscal 2009 with $78 billion of backlog, of which almost $26.7 billion belonged to the Aeronautics segment and $21.9 billion to the ES segment.

Lockheed Martin’s upside in earnings came as a surprise since earnings estimates were going down over the past month, with the quarterly Zacks Consensus estimate going down by a penny in the last 30 days. Overall, three of the 22 analysts covering the stock revised their estimate downward for the fourth quarter.

In fiscal 2009, Lockheed Martin earned $7.78 per share, beating the Zacks Consensus EPS Estimate of $7.59 but falling behind the fiscal 2008 EPS of $7.86. For fiscal 2010, the current Zacks Consensus EPS Estimate is $7.42, with estimates clearly on the rise. Over the last 30 days, four analysts raised their estimates. Also the company raised its fiscal 2010 EPS guidance range to $7.15 – $7.35, from its previous guidance range of $7.05 – $7.25.

Read the full analyst report on "LMT"
Zacks Investment Research

General Dynamics Wins Contract – Analyst Blog

Zacks Market Commentaries — Mon, 18 Jan 2010 20:25:48 +0000

General Dynamics Corporation (GD) was awarded a follow-on $60 million contract by the U.S. Air Force for providing network management and mission operations support to the 480th Intelligence Surveillance and Reconnaissance (ISR) Wing's Air Force Distributed Common Ground System (DCGS) and two network operations centers in Virginia and California. The five-year contract was awarded to General Dynamics’ business unit, General Dynamics Advanced Information Systems.

Under this contract, General Dynamics will provide systems, network and communications engineering, technical project management, systems integration and administration, configuration management, and network security management. General Dynamics will also provide network management, mission and performance management and data traffic routing support for the DCGS network.

General Dynamics, headquartered in Falls Church, Virginia, is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information system and technology. The company operates through four business segments − Information Systems & Technology, Combat Systems, Marine Systems, and Aerospace. Its major competitors are Northrop Grumman Corporation (NOC), Lockheed Martin Corporation (LMT), Raytheon Company (RTN) and Force Protection Inc. (FRPT).

General Dynamics is a well-run company that is likely to continue to deliver on expectations driven by strong revenue growth, margin expansion and cash flow generation. Strong defense outlays should further improve the company’s outlook for shareholders while an increasing funded backlog and an improving balance sheet are additional positive factors.

General Dynamics is slated to release its fiscal 2009 numbers on January 27, 2010. The company expects its earning per share for fiscal 2009 to be in the range of $6.15 – $6.20. This is in line with the Zacks Consensus Estimate for the fiscal 2009. We maintain our market Neutral recommendation on the shares.
Read the full analyst report on "GD"
Read the full analyst report on "NOC"
Read the full analyst report on "LMT"
Read the full analyst report on "RTN"
Read the full analyst report on "FRPT"
Zacks Investment Research

Airbus Flies Past Boeing – Analyst Blog

Zacks Market Commentaries — Thu, 14 Jan 2010 14:45:53 +0000

Boeing Company (BA) was summarily beaten by its traditional rival Airbus in fiscal 2009 in terms of commercial airplane delivery and order booking. Airbus delivered 498 airplanes in 2009 and recorded 271 net orders, compared to Boeing’s 481 commercial airplanes delivered and 142 net orders.

Airbus estimates it won orders valued at a net $30.3 billion in fiscal 2009, or 54% of all worldwide orders for aircraft larger than 100 seats. Airbus has a backlog of 3,488 airplanes, valued at $437.1 billion, or six years worth of full production. In comparison Boeing has a backlog of 3,375 commercial airplane orders.

Headquartered in Chicago, Boeing is the world’s largest manufacturer of commercial jet liners and military aerospace products (based on total sales). Boeing designs and produces commercial airplanes, defense systems, and civil and defense space systems. It is also the largest NASA contractor. Non-airplane products include helicopters, electronic and defense systems, missiles, satellites, rocket engines, launch vehicles, and advanced information and communication systems.

Boeing is one of the best-positioned companies among its defense peers due to its balanced exposure to commercial aircraft and defense equipment. Defense peers like Lockheed Martin Corporation (LMT) and Northrop Grumman Corporation (NOC) dabble only in defense equipment.

Going forward we believe Boeing’s $320 billion order backlog, strong order booking, stable cash flow generation and a globally diversified customer base will help maintain the growth momentum. However, a bearish commercial aerospace market, apprehension over growth in defense spending, and delays in the launch of the 787 series jetliner will affect Boeing’s performance in the near term.
Read the full analyst report on "BA"
Read the full analyst report on "LMT"
Read the full analyst report on "NOC"
Zacks Investment Research

LMT to Downsize Electronics – Analyst Blog

Zacks Market Commentaries — Fri, 08 Jan 2010 19:07:04 +0000

Lockheed Martin Corporation (LMT) announced that it plans to downsize its workforce by 1,200 to reorganize its Electronics Systems segment. The downsizing is however less than 1% of the company's workforce of 140,000. Lockheed Martin plans to carry out the downsizing in April 2010.

Through the reorganization, Lockheed Martin plans to form a new business unit called Mission Systems and Sensors that will operate within its Electronic Systems segment. The new business unit will include five lines of business including ship and aviation systems, radar systems and surface sea-based missile defense systems.

Lockheed Martin’s Electronic Systems segment manages complex programs and designs, develops and integrates hardware and software solutions to ensure the mission-readiness of armed forces and government agencies worldwide. Global security solutions include advanced sensors, decision systems and weapons for the air, land and sea. In fiscal 2008, net sales of $11.6 billion in the Electronic Systems segment represented 27% of Lockheed Martin’s total net sales. Of this, 71% was generated from the U.S. government.

Lockheed Martin remains a key player within the military space and continues to benefit from strong defense spending. The company’s customer base includes the U.S. government, foreign governments and other commercial buyers. Lockheed’s traditional defense focus appears strong, with increasing interest from domestic and international customers. In addition, management intends to explore strong business opportunities beyond the traditional defense market, specifically in the areas of civil, governmental and commercial space businesses.

Going forward, we believe Lockheed Martin has significant upside potential based on strong defense outlays throughout 2009–10, above-industry average return-on-invested-capital and expanding product lines. However, these are offset by risks related to key project executions, fate of high-cost platform programs, lower top-line results in the Aeronautics segment, higher pension liability and lower government satellite programs. We maintain our market Neutral recommendation on the shares of Lockheed Martin.
Read the full analyst report on "LMT"
Zacks Investment Research

Boeing Airplane Orders Down – Analyst Blog

Zacks Market Commentaries — Fri, 08 Jan 2010 15:00:17 +0000

Boeing Company (BA) announced that in fiscal 2009 its commercial airplane order booking tumbled 61% to only 263 gross orders compared to 662 in fiscal 2008. However, hit by the recession a number of customers either cancelled or deferred their orders, bringing down the net order to a paltry 142. The pain is expected to be shared by Boeing’s European competitor Airbus also who will release its numbers on Jan 12, 2010.

Boeing on the other hand, witnessed its commercial airplane delivery rise by 28% to 481 in fiscal 2009. The biggest seller was Boeing's 737 series airplane. The company delivered 372 of these in fiscal 2009, and still has orders for another 2,076. Boeing's total backlog for all commercial aircraft at year-end fiscal 2009 stood at 3,375. Boeing will provide its commercial airplane delivery guidance for fiscal 2010 on Jan 27, when it reports its fiscal 2009 financial results.

Headquartered in Chicago, Boeing is the world’s largest manufacturer of commercial jet liners and military aerospace products (based on total sales). Boeing designs and produces commercial airplanes, defense systems, and civil and defense space systems. It is also the largest NASA contractor. Non-airplane products include helicopters, electronic and defense systems, missiles, satellites, rocket engines, launch vehicles, and advanced information and communication systems.

Boeing is one of the best-positioned companies among its defense peers due to its balanced exposure to commercial aircraft and defense equipment. Defense peers like Lockheed Martin Corporation (LMT) and Northrop Grumman Corporation (NOC) dabble only in defense equipment.

Going forward we believe Boeing’s $320 billion order backlog, strong order booking, stable cash flow generation and a globally diversified customer base will help maintain the growth momentum. However, a bearish commercial aerospace market, apprehension over growth in defense spending, and delays in the launch of the 787 series jetliner will affect Boeing’s performance in the near term.
Read the full analyst report on "BA"
Read the full analyst report on "LMT"
Read the full analyst report on "NOC"
Zacks Investment Research

Boeing Airplane Orders Down 61% – Analyst Blog

Zacks Market Commentaries — Fri, 08 Jan 2010 15:00:17 +0000

General Dynamics Tanks for Iraq – Analyst Blog

Zacks Market Commentaries — Tue, 05 Jan 2010 15:15:56 +0000

General Dynamics Corporation’s (GD) business unit General Dynamics Land Systems was awarded a $198 million contract to build 140 M1A1 SA (Situational Awareness) tanks for Iraq. Work on the contract will be performed in Lima, Ohio; Scranton, Pennsylvania; Anniston, Alabama and Tallahassee, Florida. The completion date for the contract is May 31, 2011.

In recent times the Combat Systems segment has been the revenue growth leader. In the recent third quarter segmental top line grew 26.9% year-over-year. Key drivers for the growth were Stryker wheeled combat vehicle and Abrams main battle tank programs. General Dynamics ended the first nine months of fiscal 2009 with an order backlog of $12.9 billion. The company expects revenue growth for the full-year 2009 in Combat Systems of approximately 21% over 2008 with operating margins between 12.5% – 12.7%.

General Dynamics engages in mission-critical information systems and technologies; land and expeditionary combat vehicles, armaments and munitions; shipbuilding and marine systems; and business aviation. The company operates through four business segments − Information Systems & Technology, Combat Systems, Marine Systems, and Aerospace. The major competitors of the company are Northrop Grumman Corporation (NOC), Lockheed Martin Corporation (LMT), EMBRAER - Empresa Brasileira de Aeronáutica S.A. (ERJ) and Force Protection Inc. (FRPT).

We view General Dynamics as a well-run company that is likely to continue to deliver on expectations driven by strong revenue growth, margin expansion and cash flow generation. Strong defense outlays should further improve the company’s outlook for shareholders while an increasing funded backlog and an improving balance sheet signal additional positive factors for the company. We maintain our Neutral recommendation on the shares.
Read the full analyst report on "GD"
Read the full analyst report on "NOC"
Read the full analyst report on "LMT"
Read the full analyst report on "ERJ"
Read the full analyst report on "FRPT"
Zacks Investment Research

Zacks Analyst Blog Highlights: Lockheed Martin, General Electric, Dynamics Corporation, Boeing and Northrop Grumman – Press Releases

Zacks Market Commentaries — Mon, 04 Jan 2010 12:33:12 +0000

For Immediate Release

Chicago, IL – January 4, 2010 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Lockheed Martin Corporation (LMT), General Electric Company (GE), General Dynamics Corporation (GD), Boeing Company (BA) and Northrop Grumman Corporation (NOC).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Thursday’s Analyst Blog:

Lockheed F-16s Fly Egypt

Lockheed Martin Corporation (LMT) will sell 24 F-16 fighter aircraft to Egypt for more than $3.2 billion. The U.S. and Egyptian governments have signed the agreement, which would upgrade Egypt's existing F-16 fleet.

Lockheed Martin’s F-16s are powered by the General Electric Company's (GE) F110-GE-129 engine. The F-16 jet fighter aircraft was originally developed by General Dynamics Corporation (GD) in 1976. However, in 1993, General Dynamics sold its aircraft manufacturing business to Lockheed Martin.

Lockheed Martin’s F-16s have witnessed lower sales volumes in recent times, affecting the performance of its Aeronautics segment. In recent times, Lockheed Martin’s F-22 Raptor program was also cancelled. However, higher volumes from the F-35 program salvaged the performance of the segment.

Lockheed Martin remains a key player in the defense industry catering to the U.S. Government, foreign governments and other commercial buyers. Lockheed’s traditional defense focus appears strong, with increasing interest from domestic and international customers. In addition, management intends to explore strong business opportunities beyond the traditional defense market, specifically in the areas of civil, governmental and commercial space businesses. The company mainly competes with Boeing Company (BA), and Northrop Grumman Corporation (NOC).

Shares of Lockheed Martin rose 15 cents to $68.70 on Wednesday. Going forward, we are bullish on the company due to significant upside potential based on strong defense outlays, above-industry average return-on-invested-capital and expanding product lines. This would be partially offset by risks related to key projects execution, fate of high cost platform programs and order cancellations. Thus we reiterate our market Neutral recommendation on the shares.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

Zacks Investment Research

FLIR Acquires Directed Perception – Analyst Blog

Zacks Market Commentaries — Tue, 29 Dec 2009 22:00:57 +0000

FLIR Systems, Inc. (FLIR) announced that it has acquired Directed Perception, Inc., a leading provider of pan-tilt motion control systems for commercial and military markets, for $20 million in cash.

Directed Perception, based in Burlingame, California, is a pioneer and leader in high-performance pan-tilts in security and surveillance, maritime, military, robotics and scientific instruments markets. The acquisition of Directed Perception will enhance and differentiate FLIR's pan-tilt-zoom camera systems for both commercial and military markets through lower cost, improved functionality and ease-of-use.

On closing, Directed Perception will be renamed FLIR Motion Control Systems and will operate as a part of FLIR's Commercial Systems division. We expect this transaction to be neutral to 2010 net earnings and accretive thereafter.

The Commercial Vision Systems division provides infrared detectors, camera cores, readout integrated circuits and other sub-components to original equipment manufacturers in automotive night vision, recreational marine, firefighting, airborne law enforcement, and commercial security markets.

FLIR Systems, Inc. designs, manufactures, and markets thermal imaging and infrared camera systems in the United States and internationally. It operates in three divisions: Thermography, Commercial Vision Systems, and Government Systems. Major competitors are L-3 Communication Holdings Inc (LLL) and Lockheed Martin Corporation (LMT).

We currently have an Underperform recommendation on FLIR.

Read the full analyst report on "FLIR"
Read the full analyst report on "LLL"
Read the full analyst report on "LMT"
Zacks Investment Research

RTN Bags Billion Dollar Contract – Analyst Blog

Zacks Market Commentaries — Thu, 24 Dec 2009 19:00:05 +0000

Raytheon Company (RTN) has received a $1.1 billion contract for the production of Patriot Air and Missile Defense System for Taiwan. The award includes ground system hardware under an initial contract valued at $965.6 million and an initial spares contract valued at $134.4 million.

The U.S. Army Aviation and Missile Command, Redstone Arsenal, Alabama, issued the contract. Work under the contract will be performed at the Raytheon Integrated Air Defense Center, Andover, Massachusetts; El Paso, Texas; and Huntsville, Alabama.

The billion dollar contract will boost the order backlog of Raytheon’s Integrated Defense Systems segment. Earlier the company booked $1.9 billion orders for the Patriot program in the first nine months of 2009.

Raytheon is the one of the largest aerospace and defense companies in the U.S. It boasts of a well-diversified line of military products, including missiles, radars, sensors, surveillance and reconnaissance equipment, communication and information systems, naval systems, air traffic control systems and technical services.

We continue to view Raytheon as one of the best positioned among the large-cap defense primes due to its non-platform-centric focus, strong order bookings and order backlog, strong cash flow generation, and focus on shareholder value. We maintain our market Neutral recommendation on the shares. Defense contractors with significant exposure to high-cost platform programs include Lockheed Martin Corporation (LMT), Northrop Grumman Corporation (NOC), and General Dynamics Corporation (GD).
Read the full analyst report on "RTN"
Read the full analyst report on "LMT"
Read the full analyst report on "NOC"
Read the full analyst report on "GD"
Zacks Investment Research

Zacks Analyst Blog Highlights: Lockheed Martin Corporation, General Dynamics Corporation, Boeing Company, Northrop Grumman Corporation and Embraer – Press Releases

Zacks Market Commentaries — Thu, 24 Dec 2009 13:18:50 +0000

For Immediate Release

Chicago, IL – December 24, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Lockheed Martin Corporation (LMT), General Dynamics Corporation (GD), Boeing Company (BA), Northrop Grumman Corporation (NOC) and Embraer (ERJ).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Wednesday’s Analyst Blog:

Lockheed’s F-16s Morocco-Bound

The F-16 Fighting Falcon jet fighter aircraft was developed by General Dynamics Corporation (GD) in 1976. However in 1993, General Dynamics sold its aircraft manufacturing business to Lockheed Martin.

In recent times, Lockheed Martin Corporation has witnessed the cancellation of quite a few prominent programs such as the TSAT Mission Operations System (TMOS) contract, F-22 Raptor program and the VH-71 Presidential Helicopter (VH-71) program. Lockheed Martin’s high-cost platform programs are the prime targets of the Obama administration for budget cuts. The addition of $841.9 million would boost the beleaguered backlog of the company, which had shrunk to $76.4 billion after the first nine months of fiscal 2009 from $80.9 billion at year-end fiscal 2008.

Lockheed Martin remains a key player within the aerospace and defense segment and mainly competes with Boeing Company (BA), Northrop Grumman Corporation (NOC) and EMBRAER - Empresa Brasileira de Aeronáutica S.A. (ERJ). The company’s customer base includes the U.S. Government, foreign governments and other commercial buyers. Lockheed’s traditional defense focus appears strong, with increasing interest from domestic and international customers. In addition, management intends to explore strong business opportunities beyond the traditional defense market, specifically in the areas of civil, governmental and commercial space businesses.

Going forward, we believe Lockheed Martin has significant upside potential based on strong defense outlays throughout 2009–10, above-industry average return-on-invested-capital and expanding product lines. However, these are offset by risks related to key projects execution, fate of high cost platform programs, lower top-line results in the Aeronautics segment, higher pension liability and lower government satellite programs. We maintain our market Neutral recommendation on the shares.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

Zacks Investment Research

Lockheed’s F-16s Morocco-Bound – Analyst Blog

Zacks Market Commentaries — Wed, 23 Dec 2009 16:15:00 +0000

Lockheed Martin Corporation (LMT) was awarded a contract worth $841.9 million for supplying 24 F-16 Fighting Falcon jet fighters and related equipment for the government of Morocco. This will boost the Aeronautics segment which in recent time had witnessed lower volume from the F-22 program.

The F-16 Fighting Falcon jet fighter aircraft was developed by General Dynamics Corporation (GD) in 1976. However in 1993, General Dynamics sold its aircraft manufacturing business to Lockheed Martin.

In recent times, Lockheed Martin Corporation has witnessed the cancellation of quite a few prominent programs such as the TSAT Mission Operations System (TMOS) contract, F-22 Raptor program and the VH-71 Presidential Helicopter (VH-71) program. Lockheed Martin’s high-cost platform programs are the prime targets of the Obama administration for budget cuts. The addition of $841.9 million would boost the beleaguered backlog of the company, which had shrunk to $76.4 billion after the first nine months of fiscal 2009 from $80.9 billion at year-end fiscal 2008.

Lockheed Martin remains a key player within the aerospace and defense segment and mainly competes with Boeing Company (BA), Northrop Grumman Corporation (NOC) and EMBRAER - Empresa Brasileira de Aeronáutica S.A. (ERJ). The company’s customer base includes the U.S. Government, foreign governments and other commercial buyers. Lockheed’s traditional defense focus appears strong, with increasing interest from domestic and international customers. In addition, management intends to explore strong business opportunities beyond the traditional defense market, specifically in the areas of civil, governmental and commercial space businesses.

Going forward, we believe Lockheed Martin has significant upside potential based on strong defense outlays throughout 2009–10, above-industry average return-on-invested-capital and expanding product lines. However, these are offset by risks related to key projects execution, fate of high cost platform programs, lower top-line results in the Aeronautics segment, higher pension liability and lower government satellite programs. We maintain our market Neutral recommendation on the shares.
Read the full analyst report on "LMT"
Read the full analyst report on "BA"
Read the full analyst report on "NOC"
Read the full analyst report on "GD"
Read the full analyst report on "ERJ"
Zacks Investment Research

Boeing Bags ANA Order – Analyst Blog

Zacks Market Commentaries — Tue, 22 Dec 2009 14:15:00 +0000

Boeing Company (BA) has bagged an order from All Nippon Airways (ANA) for five 777-200ER (Extended Range) and five 767-300ER jetliners. The order is valued at approximately $2 billion at list prices.

Boeing’s 777-200ER jetliner is pitted against the A340-300 jetliner of Airbus. As of Oct 2009, Boeing delivered 412 777-200ER to customers in 33 countries. Boeing’s 767-300ER jetliner is pitted against the A330-200 jetliner of Airbus. Boeing has delivered 661 jetliners of the 767 series to customers across the globe as at end Nov 2009.

The multi-billion dollar order will boost the commercial aircraft segment of Boeing. In the recently reported third quarter of fiscal 2009, the company booked 96 gross orders. The company finished the quarter with segmental backlog of $254 billion.

Headquartered in Chicago, Boeing is the world’s largest manufacturer of commercial jet liners and military aerospace products (based on total sales). Boeing designs and produces commercial airplanes, defense systems, and civil and defense space systems. It is also the largest NASA contractor. Non-airplane products include helicopters, electronic and defense systems, missiles, satellites, rocket engines, launch vehicles, and advanced information and communication systems.

Boeing is among the best-positioned companies among its defense peers due to its balanced exposure to commercial aircraft and defense equipment. Defense peers like Lockheed Martin Corporation (LMT) and Northrop Grumman Corporation (NOC) dabble only in defense equipment.

Going forward we believe the $320 billion order backlog, strong order booking, stable cash flow generation and a globally diversified customer base will help maintain the growth momentum. However, a bearish commercial aerospace market, apprehension over growth in defense spending, and delays in the launch of the 787 series jetliner will affect the performance of the company in the near term.
Read the full analyst report on "BA"
Read the full analyst report on "LMT"
Read the full analyst report on "NOC"
Zacks Investment Research

DrStockPick.com Stock Report! 12/10/09, LMT, PWRM, SIRI, CRMT, WHR, XLPI

Dr. Stock Pick — Thu, 10 Dec 2009 17:44:27 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com Thursday Dec. 10, 2009 DrStockPick.com Stock Report! ************************************************************** Power3 Medical Products, Inc. (OTCBB: PWRM), a leader in neurodegenerative disease and cancer biomarkers and diagnostic tests reports that the company’s President and CSO, Dr. Ira Goldknopf, delivered an invited Keynote address and chaired a session [...]

ITT Corporation Beats Estimates – Analyst Blog

Zacks Market Commentaries — Tue, 17 Nov 2009 16:23:31 +0000

ITT Corporation (ITT) reported third quarter 2009 net income from continuing operations of $190 million or $1.03 per share, exceeding the Zacks Consensus Estimate of 89 cents.

The results included the effects of improved operating performance primarily driven by productivity initiatives. Revenue for the quarter was $2.7 billion, down 6% year-over-year and down 4% excluding the impact of foreign exchange and acquisitions on a comparable basis.

In the Defense Electronics & Services segment, revenue of $1.57 billion was up 2% over the comparable period in 2008. The segment recorded growth in revenues at every value center, except for the Communications Systems division, where the expected reduction in domestic SINCGARS radio deliveries resulted in a negative comparison.

In Fluid Technology, third quarter 2009 revenue was $826 million, down 13% year-over-year and 10% organically. Results outperformed expectations, despite challenged industrial, municipal and residential market conditions.

In Motion & Flow Control, revenue for the quarter was $307 million, down 22% in total and 16% organically compared to the prior year. Revenue in the automotive market exceeded expectations, primarily due to the recent stimulus activity in Europe, while performance in general industrial markets met expectations, despite some contraction. Rail markets in Europe also showed gains.

Free cash flow generation of $916 million for the first nine months of the year represents a 174% conversion of income from continuing operations, excluding special items primarily related to the charge for asbestos liability.

ITT forecasts its full-year earnings excluding special items to be $3.70 to $3.74 per share. The current Zacks Consensus Estimate is $3.75. Full-year 2009 revenue is expected to be in the range of $10.9 billion to $11.0 billion.

ITT Corporation is a high-technology engineering and manufacturing company operating on all seven continents in three vital markets: water and fluids management, global defense and security, and motion and flow control. With a heritage of innovation, ITT partners with its customers to deliver solutions that create more livable environments, provide protection and safety and connect the world. Major competitors include Lockheed Martin Corporation (LMT) and Raytheon Company (RTN).

Read the full analyst report on "ITT"
Read the full analyst report on "LMT"
Read the full analyst report on "RTN"
Zacks Investment Research

Aerospace & Defense – Industry Outlook

Zacks Market Commentaries — Tue, 03 Nov 2009 20:27:49 +0000

OVERVIEW

Inherently, big defense contractors are expected to eliminate jobs as the Pentagon has lowered spending on traditional weapon systems, while smaller, niche companies may accelerate hiring as the United States garners resources to protect ground troops and strategic computer networks.

Industry pioneer Lockheed Martin Corporation (LMT) aims to reduce 600 jobs as a result of the US Defense Department's decision to terminate the VH-71 presidential helicopter program. The Boeing Company (BA) hinted that Pentagon cuts would claim 1,000 jobs in its defense business, affecting staffing at various work sites in the United States in missile defense and in the Army's Future Combat Systems modernization program, which is now being opened to more competition.

The large commercial aircraft sector is expected to generate most of its revenue from Asia Pacific Japan (APJ) and the Middle East, relying less on U.S. orders because of the current economic climate. However, airline companies worldwide will continue to struggle with the global economic recession, fuel price fluctuations and the difficulty in raising ticket prices, which might have an impact on airplane and engine purchase orders in 2009.

Despite robust business aviation forecasts, there may be short-term customer financing challenges for the business jets segment. Thus, we would generally expect that 2009 to see a fall-off in business jet orders, production and deliveries.

The appetite for both US and non-US Aerospace & Defense assets has been significantly constrained by the ongoing global recession and the resulting squeeze on corporate profits, lack of liquidity and continuing uncertainty about when a recovery is likely to begin. Year-to-date, there have been just six deals with values at or greater than $50 million.

The total value for deals announced during the first half of 2009 with a disclosed value of at least $50 million was just under $600 million, substantially less than total deal values in the first half of 2008 ($11.7 billion), representing a decline of 95% year-over-year. Notably, the largest transaction in 2008 -- Finmeccanica’s acquisition of DRS Technologies, announced in May 2008 for $5 billion -- occurred in the first half of that year. Excluding this transaction, the total deal value for the first half of 2008 was $6.6 billion, which is still much higher than the value of transactions during the first half of 2009.

Financial investors remain on the sidelines as financing remains challenging compared with the same period a year ago. Strategic investors have also experienced a decrease in deal activity involving acquisitions of $50 million or more. To date, there have been four deals announced involving strategic investors. This compares with the 20 deals in the first half of 2008, an 80% decrease over the same period a year ago. Strategic investors have redirected their focus on internal restructuring initiatives.

On an annualized basis, the actual number of deals in 2009 is in line with 2008 (270 compared with 275, respectively). But as the economic downturn intensified in the first half of 2009, the value of those transactions has decreased drastically. The average transaction value for first-half 2008 was $85 million compared with $7.5 million for first-half 2009, representing an approximate 91% decrease.

OPPORTUNITIES

With core defense spending expected to slow, U.S. defense contractors need to identify additional revenue sources for the coming years. 2009 holds potential for interesting merger and acquisition (M&A) activity, mostly smaller deals by larger A&D firms to fill in capability gaps -- particularly in the security, defense electronics and aftermarket services business areas. U.S. defense firms may see opportunities in credit-squeezed markets to pick up U.S. assets at historically low price-to-earnings multiples.

Some large companies are expanding into the adjacent markets of mission support and services, such as performance-based logistics, or PBL, which can provide a more consistent -- albeit riskier though perhaps more profitable -- revenue stream.

Building on the example set by engine manufacturers -- Pratt & Whitney, a United Technologies Corporation (UTX) company, and Rolls-Royce Group -- to get 50% of revenues and 60% of profits from their services business, Aerospace & Defense contractors are learning how to take on, measure and internalize risk and to make support and services offerings profitable. This includes understanding how to service the equipment they manufacture, and assembling the necessary infrastructure, capabilities and people to operate it.

Shifting defense priorities could prove to be a boon for some manufacturers as the Pentagon looks to beef up protection for US ground soldiers. Oshkosh Corporation (OSK) is aiming to induct 300 to 500 workers in Wisconsin and calling back as many as 650 it had let go at a Pennsylvania facility as it looks to fill orders for armored trucks that can deflect roadside bombs. The truck manufacturer also won a $1.1 billion contract to build more than 2,200 Mine Resistant Ambush Protect All Terrain Vehicles for use by US troops in Afghanistan.

Companies are also leveraging strong balance sheets to grow organically and acquire new services business. As product development transitions to production program deliveries, it is anticipated that companies will ramp up their services businesses and profitability should improve.

Overall, in the next two decades, The Boeing Company (BA) forecasts delivery of 29,400 new commercial aircraft worth $3.2 trillion. Honeywell International Inc’s (HON) 2008 forecast predicts 17,000 new business aircraft valued at $300 billion. While we currently don’t have Outperform recommendation on aircraft and engine manufacturers, we have positive outlooks on UTX, BA and HON.

WEAKNESSES

A major Aerospace & Defense sector challenge for 2009 is improving program management and execution. For the past few years, commercial aircraft programs have run late due to global supply chain or design problems. In addition, government aerospace procurements have overrun their budgets.

The root causes for this problem are as follows:

Technical complexity - Today’s programs rely on the use of leading-edge, still-maturing software-based technologies, which require infinitely higher levels of functionality, interoperability and integration. This technical complexity has resulted in increased development time vs. historical programs.
Talent crisis - Twenty-seven percent of employees in the sector are estimated to retire in the next five years. In addition, the National Science Foundation expects the number of science, technology and engineering retirements to increase threefold annually in the next 10 years. Unfortunately, the industry may not be able to attract sufficient new talent to make up for the deficit.
Supply chain challenges - The Aerospace & Defense supply chain management model is transitioning to a global, super-supplier model for the Tier 1 suppliers and original equipment manufacturers (OEMs). These organizations are shedding manufacturing and subsystem assembly work, relying on super- or middle-tier suppliers to take on increasingly complex design and manufacturing tasks.
Politics - Aerospace & Defense programs span multiple years but are budgeted annually. In times of economic stress, other government priorities may prompt cuts in multiyear projects for a number of units. This approach typically results in increased fly-away unit costs.
Program management challenges - Many Aerospace & Defense program schedules are based on a "sunny day" scenario, rather than a more realistic "cloudy day" scenario that contemplates program delays, technical difficulties, supply chain problems and changing requirements. These program management challenges and associated cost overruns need to be addressed by improving cost, schedule, and risk management processes and techniques.

With an increase in passenger traffic and competitors, commercial airplanes have become more commoditized, requiring companies to improve differentiation. Airline manufacturers therefore should promote product and process innovation.

The new Boeing 787 Dreamliner is a good example: It will be the first major aircraft to use composite materials for most of its construction. Featuring an estimated 20% lower direct operating cost, better passenger comfort via higher air pressure and humidity, larger windows and less-frequent maintenance requirements, the 787 has become the most successful aircraft product launch in aviation history, as measured by the number of aircraft ordered prior to first flight.Zacks Investment Research

CSRH, EXC, PSFT, DB, PWRM, AVP, AQNM, RF, CVAT, LMT , DrStockPick.com Stock Report!

Dr. Stock Pick — Wed, 28 Oct 2009 19:33:47 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Wednesday October 28, 2009 DrStockPick.com Stock Report! CSRH, EXC, PSFT, DB, PWRM, AVP, AQNM, RF, CVAT, LMT ************************************************************** EXC, Exelon Corp. EXC, a utility services holding company, through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity to residential, commercial, industrial, and wholesale customers in [...]

PWRM, LMT, CVAT, GD, AQNM, IBM, DrStockPick.com Stock Report!

Dr. Stock Pick — Tue, 27 Oct 2009 17:03:45 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Tuesday October 27, 2009 DrStockPick.com Stock Report! PWRM, LMT, CVAT, GD, AQNM, IBM ************************************************************** PWRM, Power 3 Medical Products Inc, PWRM.OB Power3 Medical Products, Inc. is a leading bio-medical company engaged in the commercialization of neurodegenerative disease and cancer biomarkers, pathways, and mechanisms of diseases through the development of [...]

Zacks Bull and Bear of the Day Highlights: Vodafone, Conmed Corp., Caterpillar Inc., Coca Cola Company and Lockheed Martin Corporation – Press Releases

Zacks Market Commentaries — Wed, 21 Oct 2009 13:00:18 +0000

For Immediate Release

Chicago, IL – October 21, 2009 – Zacks Equity Research highlights Vodafone (VOD) as the Bull of the Day and Conmed Corp. (CNMD) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Caterpillar Inc. (CAT), Coca Cola Company (KO) and Lockheed Martin Corporation (LMT).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676

Here is a synopsis of all five stocks:

Bull of the Day:

We maintain our Outperform recommendation for Vodafone (VOD), the largest revenue generating international wireless carrier. Revenue growth in the last quarter was fuelled by foreign exchange gains and acquisitions.

Additionally, increase in subscriber base was driven by continued healthy net additions in its Indian operation. Vodafone's globally diversified operation provides hedging elements which offset price competition and translation risk that may arise in specific markets. The company continues to accelerate 3G wireless service deployments and expanding network availability across Asia, Eastern Europe and Africa.

Moreover, Vodafone is focused on improving shareholder returns through attractive dividend payouts. Management's outlook for fiscal 2010 remains favorable as operating results are expected to improve with continued growth across incipient markets coupled with ongoing cost saving initiatives and currency exchange translation gains.

Bear of the Day:

Conmed Corp. (CNMD) operates in highly competitive markets against competitors that are much larger, technically competent and possess substantially more assets.

Additionally, many of these competitors offer a range of products not matched by Conmed, which may make Conmed's offerings less attractive to surgeons, hospitals, and group purchasing organizations that are trying to reduce the number of vendors they do business with. In the second quarter, earnings per share were $0.17, compared to the Zacks Consensus Estimate of $0.16 and the year-ago earnings of $0.43.

We have an Underperform rating on Conmed with a target price of $18.

Lockheed Demonstrates Strength – Analyst Blog

Zacks Market Commentaries — Tue, 20 Oct 2009 17:47:02 +0000

Before markets opened today, the Big Daddy among Defense contractors, Lockheed Martin Corporation (LMT), reported strong third quarter fiscal 2009 results and raised its fiscal outlook. In the reported quarter with EPS of $2.07, the company beat both the Zacks Consensus Estimate and the year-ago EPS of $1.83 and $1.92, respectively.

Net earnings rose to $797 million in the reported quarter compared to $782 million in the year-ago quarter. In a reversal of fortune, pension accounting adjustment negated $113 million from the quarter while in the year-ago quarter this adjustment had added $32 million to earnings. The spike in pension liability was due to the lower value of the company’s retiree fund.

On the revenue front with $11.1 billion, the company beat the year-ago result of $10.6 billion by 4.5%. The upside in sales, year-over-year came from higher numbers across the board but especially from the Space Systems segment (SS) (8.6%). Of the rest, Aeronautics and Electronics Systems (ES) grew a respectable 5.7% and 4.3%, year-over-year, respectively. However, Information Systems & Global Services segment (IS&GS) grew only marginally -- 0.9% year-over-year.

However, the bottom-line tumbled with operating profit reducing year-over-year by 8.6% and 3.3% in the IS&GS and SS segments respectively. IS&GS was affected by reduction in security solutions activities and global programs. SS’ operating profit decreased primarily due to lower government satellite programs.

This was partially salvaged by higher operating profit in ES and Aeronautics segments which rose 6.9% and 5.6%, year-over-year, respectively. ES was boosted by higher volume on tactical missile, air defense programs and fire control systems. Similarly Aeronautics rose due to increases in Air Mobility and Other Aeronautics Programs.

Lockheed Martin finished the quarter with $76.4 billion of backlog, of which almost $26 billion belongs to the Aeronautics segment. The company reaffirmed its fiscal 2009 revenue outlook and expects revenues in the range of $44.7 – $45.7 billion. However, it raised its outlook for fiscal 2009 EPS and Return on Invested Capital (ROIC).

The company now expects its diluted EPS for fiscal 2009 to be in the range of $7.40 – $7.60 from the earlier guidance range of $7.15 – $7.35. Similarly, ROIC guidance for fiscal 2009 is raised to greater than or equal to 19.5% from the earlier guidance of greater than or equal to 18.5%. However, Lockheed Martin has projected a lower guidance of $7.05 – $7.25 for its fiscal 2010 outlook. We maintain our market Neutral recommendation on the shares of Lockheed Martin.
Read the full analyst report on "LMT"
Zacks Investment Research

ITT Corporation Gets Orders – Analyst Blog

Zacks Market Commentaries — Mon, 19 Oct 2009 15:20:00 +0000

ITT Corporation (ITT) has been awarded a $19.3 million order from the U.S. Army's Research Development & Engineering Command Acquisition Center under the OMNI VII contract for AN/PVS-14 night vision monocular devices. Eighty percent of these goggles are required by the U.S. Air Force with the remaining quantities for the U.S. Navy and U.S. Army.

The AN/PVS-14 is a high-performance, lightweight and reliable night vision monocular that provides enhanced resolution for mobility and target identification. These rugged devices can be hand-held, head- or weapon-mounted or fitted to a camera. The AN/PVS-14 operates on a single AA battery and are equipped with ITT's thin-filmed proprietary Generation 3 Pinnacle image intensifier tube.

The Gen 3 Pinnacle tube has the ability to detect available light more than 10 times the power of previous generations. The company has also been awarded a $72 million Indefinite Delivery, Indefinite Quantity (IDIQ) contract for its Aviator's Night Vision Imaging Systems, night vision tubes and spare parts.

The company has competitively won the entire IDIQ contract awarded by the U.S. Army Research Development and Engineering Command. ITT's Night Vision business, based in Roanoke , Va., is the world's leading developer, producer and supplier of head- and helmet-mounted night vision solutions and image intensifiers for U.S. and allied military forces, as well as the homeland security market.

ITT has served the U.S. military with premier research, development, production and logistics for analog and digital fusion solutions for 50 years. ITT Corporation is a high-technology engineering and manufacturing company operating in all seven continents in three vital markets: water and fluids management, global defense and security, and motion and flow control.

With a heritage of innovation, ITT partners with its customers to deliver extraordinary solutions that create more livable environments, provide protection and safety and connect the world. Major competitors are Raytheon Company (RTN) and Lockheed Martin Corporation (LMT). We currently have a Neutral recommendation on ITT.
Read the full analyst report on "ITT"
Read the full analyst report on "LMT"
Read the full analyst report on "RTN"
Zacks Investment Research

LMT, PWRM, NOC, CSRH, IBM, CVAT, CME, AQNM, DrStockPick.com Stock Report!

Dr. Stock Pick — Fri, 16 Oct 2009 18:25:55 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Friday October 16, 2009 DrStockPick.com Stock Report! LMT, PWRM, NOC, CSRH, IBM, CVAT, CME, AQNM ************************************************************** LMT, Lockheed Martin Corporation LMT is a world leader in systems integration and the development of air and missile defense systems and technologies, including the first operational hit-to-kill missile. It also [...]

Lockheed Lands Army Contract – Analyst Blog

Zacks Market Commentaries — Fri, 09 Oct 2009 22:12:31 +0000

Lockheed Martin Corporation (LMT) yesterday bagged a $133 million contract from the U.S. Army to provide eight threat detection systems. The company will supply the systems over the next 11 months. The U.S. Army is already using nine such systems. Lockheed’s detection systems are equipped with multi-mission sensors to provide intelligence, surveillance, reconnaissance and communications to support coalition forces.

In recent times, Lockheed Martin Corporation has witnessed the cancellation of quite a few prominent programs such as the TSAT Mission Operations System (TMOS) contract, F-22 Raptor program and the VH-71 Presidential Helicopter (VH-71) program. Lockheed Martin’s high-cost platform programs were the prime targets of the Obama administration for budget cuts. The addition of $133 million would boost the beleaguered backlog of the company, which shrunk to $79.2 billion after the first half of the fiscal 2009 from $80.9 billion at year-end fiscal 2008.

Lockheed Martin remains a key player within the military space and continues to benefit from strong defense spending. The company’s customer base includes the U.S. Government, foreign governments and other commercial buyers. The company’s traditional defense focus appears strong, with increasing interest from domestic and international customers. In addition, management intends to explore strong business opportunities beyond the traditional defense market, specifically in the areas of civil, governmental and commercial space businesses.

Going forward, we believe Lockheed Martin has significant upside potential based on strong defense outlays throughout 2009–10, above-industry average return-on-invested-capital, and expanding product lines. However, these are offset by risks related to key projects execution, fate of high cost platform programs, lower top-line results in the Aeronautics segment, higher pension liability, and lower delivery of F-16s in recent times. We maintain our market Neutral recommendation on the shares.
Read the full analyst report on "LMT"
Zacks Investment Research

GD, PWRM, NOC, CSRH, CVAT, LMT, RTN, DrStockPick.com Stock Report!

Dr. Stock Pick — Tue, 06 Oct 2009 16:02:52 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Tuesday October 6, 2009 DrStockPick.com Stock Report! GD, PWRM, NOC, CSRH, CVAT, LMT, RTN ************************************************************** GD, General Dynamics Corp. GD is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. GD will provide enterprise information technology [...]

IMCI, GRMN, AQNM, CVS, CSRH, LVLT, CVAT, LMT, DrStockPick.com Stock Report!

Dr. Stock Pick — Fri, 02 Oct 2009 18:39:49 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Friday October 2, 2009 DrStockPick.com Stock Report! IMCI, GRMN, AQNM, CVS, CSRH, LVLT, CVAT, LMT ************************************************************** IMCI, Infinite Group Inc., IMCI.OB IMCI is a world-class IT services and solutions provider serving a range of government and commercial organizations. Headquartered in Pittsford, New York, with offices in the Washington, D.C., [...]

ITT Corp. Gets Army Contract – Analyst Blog

Zacks Market Commentaries — Tue, 29 Sep 2009 20:12:38 +0000

ITT Corporation (ITT) has received a $72.2 million contract from the Army to provide a night vision imaging system for aviators. Work is to be performed in Roanoke, VA and is expected to be completed by Sept. 30, 2012.

Enhanced Night Vision Goggle (ENVG) optically combines an image intensification image, and proven thermal infrared technology, allowing for improved mobility and situational awareness—through clear target detection and improved target recognition. The ENVG combines the strengths of both technologies into one helmet-mounted unit, allowing war fighters to complete their missions more effectively, even when confronted by low-light or obscured conditions.

ITT's Night Vision business is the world's leading developer, producer and supplier of head- and helmet-mounted night vision solutions and image intensifiers for U.S. and allied military forces as well as the Homeland Security market. ITT has served the U.S. military with premier research, development, production and logistics for analog and digital fusion solutions for 50 years. ITT delivered its one millionth Gen 3 image intensification tube in 2007.

ITT Corporation is a high-technology engineering and manufacturing company operating on all seven continents in three vital markets: water and fluids management, global defense and security, and motion and flow control. With a heritage of innovation, ITT partners with its customers to deliver extraordinary solutions that create more livable environments, provides protection and safety and connects the world. Major Competitors include Lockheed Martin Corporation (LMT) and Raytheon Company (RTN).

We currently have a Neutral recommendation on ITT.
Read the full analyst report on "ITT"
Read the full analyst report on "LMT"
Read the full analyst report on "RTN"
Zacks Investment Research

PWRM, CVX, NDAQ, TSPG, BA, AQNM, LMT, DrStockPick.com Stock Report!

Dr. Stock Pick — Tue, 29 Sep 2009 17:04:00 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Tuesday September 29, 2009 DrStockPick.com Stock Report! PWRM, CVX, NDAQ, TSPG, BA, AQNM, LMT ************************************************************** PWRM, Power 3 Medical Products Inc, PWRM.OB Power3 Medical Products, Inc. is a leading bio-medical company engaged in the commercialization of neurodegenerative disease and cancer biomarkers, pathways, and mechanisms of diseases through the development [...]

PWRM, RTN, CVAT, LMT, CSRH, INTU, TSPG, MRK, QGEN, DrStockPick.com Stock Report!

Dr. Stock Pick — Wed, 23 Sep 2009 16:52:13 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Wednesday September 23, 2009 DrStockPick.com Stock Report! PWRM, RTN, CVAT, LMT, CSRH, INTU, TSPG, MRK, QGEN ************************************************************** RTN, Raytheon Company RTN is a technology and innovation leader specializing in defense, homeland security and other government markets throughout the world. RTN has surpassed another milestone on its Modernized User Equipment program [...]

Arrayit Corp. (ARYC.OB) Wins Equipment Contract from Sandia National Laboratories

QualityStocks — Tue, 22 Sep 2009 01:22:30 +0000

Arrayit Corp., a developer and manufacturer of proprietary life science technologies and consumables for disease prevention, treatment and cure, recently announced that the company delivered its proprietary nanotechnology platform to Sandia National Laboratories in Albuquerque, New Mexico on September 11, 2009. Arrayit Corporation offers over 650 products to a customer base of more than 2,500 [...]

Lockheed Wins Air Force Contract – Analyst Blog

Zacks Market Commentaries — Fri, 04 Sep 2009 21:40:14 +0000

Lockheed Martin Corporation (LMT) bagged a $421.1 million contract from the U.S. Air Force for upgrading the Air Force’s command and control center, Weapon System Integrator. The company will provide systems engineering, integration, modernization, maintenance, management and contingency support.

In recent times, Lockheed Martin has witnessed the cancellation of quite a few prominent programs such as the TSAT Mission Operations System (TMOS) contract, F-22 Raptor program and the VH-71 Presidential Helicopter (VH-71) program. Lockheed’s high-cost platform programs were the prime targets of the Obama Administration for budget cuts.

The addition of $421.1 million would boost the beleaguered backlog of the company, which reduced to $79.2 billion after the first half of the fiscal 2009 from $80.9 billion after year-end fiscal 2008.

Lockheed Martin remains a key player within the military space and continues to benefit from strong defense spending. The company’s customer base includes the U.S. government, foreign governments and other commercial buyers.

The company’s traditional defense focus appears strong, with increasing interest from domestic and international customers. In addition, management intends to explore strong business opportunities beyond the traditional defense market, specifically in the areas of civil, governmental and commercial space businesses.

Going forward, we believe Lockheed Martin has significant upside potential based on strong defense outlays throughout 2009–10, above-industry average return-on-invested-capital, and expanding product lines. However, these are offset by risks related to key projects execution, fate of high cost platform programs, lower top-line results in the Aeronautics segment, higher pension liability, and lower delivery of F-16s in recent times.

We maintain our market Neutral recommendation on the shares.
Read the full analyst report on "LMT"
Zacks Investment Research

PennyOmega.com Stock Report! 8/26/09, TTEG, KIRK, LMT, WTWG, SPP, FFWC

PennyOmega.com — Wed, 26 Aug 2009 16:09:46 +0000

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

ITT Corp. Wins Defense Orders – Analyst Blog

Zacks Market Commentaries — Fri, 21 Aug 2009 18:43:14 +0000

ITT Corporation (ITT) has been awarded $43 million follow-on orders by the U.S. Army's Research, Development and Engineering Command Acquisition Center for the Enhanced Night Vision Goggle and associated spare parts.

Enhanced Night Vision Goggle optically combines an image intensification image, and proven thermal infrared technology, allowing for improved mobility and situational awareness—through clear target detection and improved target recognition.

ITT's Night Vision business, based in Roanoke, VA, is the world's leading developer, producer and supplier of head- and helmet-mounted night vision solutions and image intensifiers for U.S. and allied military forces as well as the homeland security market.

Subsequently, ITT Corp. also received a $29.2 million contract from the U.S. Navy to produce radar modification kits used aboard Navy ships. The radars enhance missile guidance capability, while the kits will increase operational availability and decrease operating and support costs, according to the government notice.

ITT Corporation is a high-technology engineering and manufacturing company with approximately 40,000 employees. Its portfolio of businesses is aligned with enduring, global growth drivers and is spread on all seven continents in three vital markets: water and fluids management, global defense and security, and motion and flow control. Its major competitors are Lockheed Martin Corporation (LMT) and Raytheon Company (RTN).

We currently have an Outperform Recommendation on ITT Corporation.
Read the full analyst report on "ITT"
Read the full analyst report on "LMT"
Read the full analyst report on "RTN"
Zacks Investment Research

PennyOmega.com Stock Report! 8/17/09, MTN, LMT, ITT, TKTM, NDAQ, WYE

PennyOmega.com — Mon, 17 Aug 2009 18:35:52 +0000

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

Raytheon Beats Estimates, LMT – Analyst Blog

Zacks Market Commentaries — Mon, 27 Jul 2009 18:58:35 +0000

Raytheon (RTN) announced better-than-expected 2nd quarter results. The defense electronics giant -- in contrast to the flagship of defense contractors, Lockheed Martin Corporation (LMT) -- reported 25% higher EPS of $1.24 over the year-ago quarter.

Lockheed Martin reported 13% lower EPS over the year-ago quarter. While Lockheed was swept away by pension blues, Raytheon gained $11 million during the quarter from pension adjustments.

The Details

Raytheon exceeded both our and market expectations of $1.13 for the quarter. Operating income fell marginally year-over-year (1.9%) in the Integrated Defense Systems (IDS) and Missile Systems (MS, 7%) segments. This was more than made up by Network Centric Systems (NCS, 12.6%), Space and Airborne Systems (SAS, 24.1%) and Technical Services (TS, 17.8%), along with steady Intelligence and Information Systems (IIS).

On the revenue front, although Raytheon grew 4% during the quarter to $6.1 billion, it failed to cross our expectations and that of the market of $6.2 billion. Topline growth was fueled by all but the IIS segment, owing to lower volumes in the e-Borders program.

Raytheon suffered a $2.4 billion reversal in its backlog in June 2009 on account of the cancellation of the Kinetic Energy Interceptor (KEI) program. Notwithstanding, the company booked new orders worth $7.6 billion during the quarter and was able to offset most of the impact. Total backlog stood at $37.3 billion at the end of the quarter. The home-run was hit by the IDS, MS, SAS segments; each garnering more than $1 billion in new orders for the company during the quarter.

Raytheon increased its full-year outlook reflecting solid perofrmance during the quarter. The company now expects 2009 revenue in the range of $24.5 - $25 billion, compared to the previous guidance of $24.4 - $24.9 billion. EPS for the year is forecasted between $4.60 and $4.75.

Positive Sentiment

We continue to view Raytheon as one of the best-positioned among the large-cap defense primes due to its non-platform-centric focus, strong order bookings and order backlog, strong cash flow generation and focus on shareholder value. Specifically, revenue and earnings growth are driven by strong demand for missile and missile defense systems and network-centric mission solutions, including sensor and communication systems.

The company also offers investors strong order bookings (notable contracts include the STOC II and FOCUS programs for the U.S. Army, AMRAAM for both international customers and the U.S. Air Force, Standard Missile-3 for the U.S. Navy and the Missile Defense Agency, and Evolved Sea Sparrow Missiles for international customers and the US Navy), an above industry ROE, an improving balance sheet and one of the highest dividend yields in the industry. In the first half of 2009, Raytheon witnessed a brisk pace in its order backlog with total bookings of $12.9 billion and an order backlog of $37.3 billion.

Looking Ahead

Going forward, growth will be driven by focus on ISR unmanned systems, training, cyber security, Standard Missile-3, Patriot, Zumwalt and THAAD. Furthermore, the recent acquisition of Telemus Solutions, a provider of information security, intelligence and technical services, strengthens the company’s focus on the emerging cyber-security market.

However, concerns about the future growth of defense spending on Raytheon programs, given continuing budget deficits as well as concerns related to the company’s program execution, remain ongoing risks.

Over the past year, RTN traded within a range of 6.9x to 12.7x then current-year earnings estimates. Currently, RTN trades at only 9.3x and 8.9x, respectively, our 2009 and 2010 EPS estimates, or at a significant discount to its military electronics industry median and mean multiple values. Likewise, relative sales and cash-flow multiples both indicate a discount valuation of RTN.

The Recommendation

Accordingly, with a predominantly bullish outlook, partially offset by several company-specific risks and an attractive valuation, we note a bias toward outperformance, and maintain our BUY recommendation on RTN stock with a six-month target price of $49.25, or 10.1x and 9.7x, respectively, our 2009 and 2010 EPS estimates. Price appreciation to our near-term valuation target, combined with the stock’s recently increased $0.31 per share quarterly cash dividend -- which we deem sustainable and secure based upon conservative projected payout ratios -- represents annualized total return potential of 20.7%.

Raytheon Company is the one of the largest aerospace and defense companies in the U.S., with a well-diversified line of military products, including missiles, radars, sensors, surveillance and reconnaissance equipment, communication and information systems, naval systems, air traffic control systems and technical services.
Read the full analyst report on "RTN"
Zacks Investment Research

Zacks Analyst Blog Highlights: L-3 Communications Holdings, Inc., Lockheed Martin Corporation, Raytheon Company, FLIR Systems and Sprint Nextel – Press Releases

Zacks Market Commentaries — Fri, 24 Jul 2009 20:12:26 +0000

For Immediate Release

Chicago, IL – July 24, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: L-3 Communications Holdings, Inc. (LLL), Lockheed Martin Corporation (LMT), Raytheon Company (RTN), FLIR Systems (FLIR) and Sprint Nextel (S).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Thursday’s Analyst Blog:

L-3 Communications Displays Resilience

Before the opening bell, L-3 Communications Holdings, Inc. (LLL) opened its second quarter reporting sales growth of 5.6% year-over-year to $3.93 billion barely beating our estimate of $3.88 billion and consensus estimate of $3.84 billion.

Showing resilience the company despite a higher pension liability partially offset the fall in EPS as widely expected. Higher pension liability during the quarter was due to fall in value of pension plan assets. During the quarter EPS fell to $1.90 from $2.21 in the year-ago quarter. However on the way it beat our EPS expectation of $1.83 and street apprehension of $1.77. The pension “poison" in the second quarter has affected defense goliath Lockheed Martin Corporation (LMT) too, only Raytheon Company (RTN) has passed the quarter unscathed.

The bell ringer for L-3 Communications topline during the quarter was the Command, Control, Communications and Intelligence, Surveillance, and Reconnaissance (C3ISR) segment. Capitalizing on the current Pentagon focus on airborne ISR and networked communication systems for manned and unmanned platforms, topline grew 23.6%. While Specialized Products (SP) and Aircraft Modernization and Maintenance (AM&M) segments chipped. However limited downside came from the Government Services (GS) segment where topline shrunk 3% primarily due to the company’s change of status in the linguist services contract.

L-3 Communications improved its whole year EPS outlook by a dime to $7.25 – $7.35 from $7.17 – $7.32. The upsurge in guidance is fuelled by higher expected margins in the C3ISR segment, which is expected to absorb the expected lower margins in the Government Services and the AM&M segments. The company finished the quarter with funded orders worth $3.3 billion and funded backlog of $11.2 billion. However, the market wasn’t kind to all of its peers; FLIR Systems (FLIR) this morning lowered its revenue outlook and upper end of its expected EPS for the whole fiscal. We maintain our speculative BUY rating on LLL.

Sprint Expanding 4G Footprint

Sprint Nextel (S) recently announced the expansion of its fourth-generation (4G) wireless broadband service as the company plans to officially launch services in three more US cities of Atlanta, Portland and Las Vegas in August 2009. The third-largest US wireless carrier also plans to roll out 4G services in additional markets including Chicago, Dallas, Philadelphia, Seattle and Honolulu through 2009. Sprint is deploying its 4G network under the "Sprint 4G" brand based on the WiMax mobile broadband technology.

In early October 2008, Sprint became the first wireless operator to launch 4G mobile broadband services in the U.S with the official commercial service roll outs in Baltimore. The efforts to strengthen its 4G wireless leadership was further demonstrated by the launch of the nation’s first dual-mode mobile broadband service in December 2008, which operates on both 3G and 4G networks.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

Zacks Investment Research

Northrop Grumman Fails To Impress – Analyst Blog

Zacks Market Commentaries — Fri, 24 Jul 2009 12:25:23 +0000

Los Angeles-based leading shipbuilder and the second largest U.S. defense contractor Northrop Grumman Corporation (NOC) reported unimpressive second quarter results, with EPS of $1.21 missing the consensus by 8 cents. Affected by pension costs and a weak shipbuilding segment, results were weaker than the peer group, which includes Boeing (BA), Lockheed Martin (LMT), and Raytheon Company (RTN). The company however reaffirmed its fiscal outlook. For fiscal 2009, we expect the company’s topline to be near the $35 billion mark with EPS hovering near $5.

However on the revenue front the company registered close to $9 billion, up 4% year-over-year, beating the consensus expectation of $8.7 billion. In the quarter, Electronic Systems and Technical Services sales grew by double digits, with impressive growth from the Aerospace systems, and the steady Information Systems segment.

However, the Achilles heel was the Shipbuilding segment where sales shrunk by 10% year-over-year. The downside came from lower volume for expeditionary warfare programs. The bottom line sank rock-bottom by 89% due to a pre-tax charge reflecting higher estimates for the LPD-class ships and the LHA-6.

Electronic Systems was the star of the quarter with operating income growing one-fourth year-over-year. Electronic Systems sales grew due to higher deliveries of Large Aircraft Infrared Countermeasures systems; higher volume for the Space Based Infrared System program; higher volume for postal automation programs, and higher inter-company sales for aerospace and naval & marine programs. Technical Services sales increased due to higher volume for life cycle optimization & engineering, and training & simulation programs.

But the real punch came from the cancellation of the Kinetic Energy Interceptor (KEI) program, where Northrop Grumman was the prime contractor. The order backlog of the company was therefore, reduced by $5.1 billion at the end of the quarter. As a result total backlog decreased to $70.4 billion from $78.1 billion sequentially. But here again Electronic Systems was able to increase its backlog albeit marginally to $10.8 billion from $10.5 billion.

Obama Administration’s stance against high-cost fancy weapon programs has affected all and sundry in the defense and aerospace segment. Even the goliath was not spared; Lockheed Martin Corporation’s (LMT) backlog was also cut by $2.6 billion on account of the termination of the VH-71 presidential helicopter, and Transformational Satellite or TSAT programs.
Read the full analyst report on "NOC"
Read the full analyst report on "LMT"
Read the full analyst report on "BA"
Read the full analyst report on "RTN"
Zacks Investment Research

End of the road for F-22 – Analyst Blog

Zacks Market Commentaries — Wed, 22 Jul 2009 15:07:15 +0000

On Tuesday July 21, the Senate voted 58-40 and sent Lockheed Martin Corporation’s (LMT)) F-22 fighter to an early perdition. The air superiority fighters had entered the air force in 2005. The vote removed $1.75 billion set aside for seven more F-22s in the $680 billion 2010 defense bill.

The twin-engine F-22 Raptor fighter touted as the most advanced in the world was shelved primarily due to a lack of sophisticated planes to shoot at. Although advocates of F-22 put forward the Chinese and Russian menace, it looked too far fetched to convince the Senate and the White House.

The U.S. already has 187 of these Raptors. But the need of the day to tackle ground enemies dictates more low-cost F-35 Joint Strike Fighters and unmanned UAVs. The defense bill has thus allotted berth to 30 F-35s in the armory, which are also manufactured by Lockheed Martin. This single engine plane is designated to eventually replace the vintage F-16s.

The F-22 pill would not be easily swallowed by Lockheed Martin, since only the Aeronautics segment witnessed any upside in the second quarter 2009 results. With lower volumes in the C-130J and C-5 programs, the company in the near term will look for growth in Aeronautics only through the F-35 program. We reiterate our BUY rating on LMT.
Read the full analyst report on "LMT"
Zacks Investment Research

Zacks Analyst Blog Highlights: Texas Instruments, Xilinx, Cypress, Altera and Lockheed Martin Corporation – Press Releases

Zacks Market Commentaries — Wed, 22 Jul 2009 13:25:44 +0000

For Immediate Release

Chicago, IL – July 22, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Texas Instruments (TXN), Xilinx (XLNX), Cypress (CY), Altera (ALTR) and Lockheed Martin Corporation (LMT).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Tuesday’s Analyst Blog:

Texas Instruments Beats Easily

On July 20, 2009, Texas Instruments (TXN) reported results for the second quarter of fiscal year 2009 ending June 2009. Both the top and bottom lines were well over initial consensus estimates.

Management stated that channel inventories declined 10% in the second quarter, and customer lead times stretched out on some products. This does not come as a surprise, since a few of the other companies generating significant sales from communications customers are seeing similar conditions:

Xilinx (XLNX), for example, experienced supply constraints, and was unable to service demand. Cypress (CY) management was of the opinion that restocking activity had not yet impacted the company’s business. Altera’s (ALTR) reported flattish inventory at distributors and extended lead times. The company expects lead times to return to normal levels over the next two years.

Lockheed Martin Still Mighty

Pension accounting adjustment negated $115 million from the quarter while in the year-ago quarter this adjustment added $32 million to earnings. The spike in pension liability was due to the lower value of the company retiree fund. However, the results still beat the consensus EPS estimate of $1.81 by a wide margin.

On the revenue front, with $11.2 billion the company beat the year-ago result of $11 billion. This was in line with the consensus estimate of $11.14 billion.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

Zacks Investment Research

Lockheed Martin Still Mighty – Analyst Blog

Zacks Market Commentaries — Tue, 21 Jul 2009 15:00:02 +0000

Before the markets opened today, the Big Daddy among defense contractors, Lockheed Martin Corporation (LMT) reported second quarter earnings of $734 million or EPS of $1.88, as compared to earnings of $882 million or EPS of $2.15 in the year-ago quarter. Although EPS fell by $0.27 year-over-year, $0.19 is attributed to pension adjustments.

Pension accounting adjustment negated $115 million from the quarter while in the year-ago quarter this adjustment added $32 million to earnings. The spike in pension liability was due to the lower value of the company retiree fund. However, the results still beat the consensus EPS estimate of $1.81 by a wide margin.

On the revenue front, with $11.2 billion the company beat the year-ago result of $11 billion. This was in line with the consensus estimate of $11.14 billion.

The downside in EPS year-over-year came from higher pension liability coupled with lower earnings year-over-year in the Information Systems & Global Services (IS&GS) (9%), and Space Systems (SS) (16%), segments. Earnings were cut due to shrinking margins which skydived from 12.2% and 9.5% to 10.9% and 8.2%, respectively, for the SS and IS&GS segments.

This was partially offset by higher earning at Aeronautics alone with steady Electronics Systems (ES) segments. In Aeronautics, margins rose marginally to 12.9% from 12.7% in the year-ago quarter, while ES remained steady at 13.2% in both the periods.

IS&GS earnings during the quarter were dampened by lower volumes in enterprise civilian services program and security solutions activities. Similarly, SS also suffered lower volumes in Orion, the Space Shuttle’s external tank and defensive missile programs.

However the upside in Aeronautics was fuelled by higher traffic in the F-35, F-22, C-130 and C-5 programs. An area of caution here since the veto threat is still looming large on F-22. In terms of aircraft delivery (F-16, F-22, C-130J) during the first half of the fiscal the company equaled the year-ago period numbers (16, 10, 6).

Lockheed Martin finished the quarter with $79.2 billion of backlog in its kitty, of which almost $28 billion belongs to the Aeronautics segment. The company reaffirmed its fiscal 2009 revenue and EPS outlook and expects revenues in the range of $44.7 – $45.7 billion and diluted EPS in the range of $7.15 – $7.35.

Given the consensus estimates of $45.4 billion and EPS $7.41 for fiscal 2009, we should see some EPS estimate revisions in response to this morning's report. Our BUY recommendation on LMT remains unchanged.
Read the full analyst report on "LMT"
Zacks Investment Research

LMT: Will JASSM Blast Off? – Analyst Blog

Zacks Market Commentaries — Tue, 07 Jul 2009 16:30:48 +0000

Lockheed Martin Corporation’s (LMT) long-in-the-making JASSM (Joint Air-to-Surface Standoff Missile) stealth cruise missile may meet a pre-mature detonation.

Although the weapon was declared combat-ready in 2003, LMT on Monday was awarded a measly $23 million contract for production of only 12 Joint Air-to-Surface Standoff Missile-Extended Range (JASSM-ER) test missiles. Of these, 6 will be used to complete a development test flight program while the rest will go for operational tests.

LMT has reason to worry, since the $6 billion radar-evading missile under development since 1996 is a plausible target for the Pentagon trying to realign its weapons programs portfolio under budgetary complications. The long-range, conventional, precision missile designed to destroy fixed and moving targets is still far from the Air Force's 90% reliability requirement.

Finally, the US Air Force's proposed fiscal 2010 budget set aside only $82.2 million for missile reliability issues while excluding any funding for new missiles. The fate of JASSM will be sealed only after critical tests in late summer.
Read the full analyst report on "LMT"
Zacks Investment Research

F-22: The Fighter Fights Back – Analyst Blog

Zacks Market Commentaries — Fri, 26 Jun 2009 17:10:33 +0000

The giant toddler of the U.S. Defense Industry -- Lockheed Martin Corporation
(LMT) -- can breathe easy for the moment -- things are looking up for F-22, the LMT fighter plane.

The threat that Secretary Gates will send the F-22 program to an early perdition in 2010 is proving to be just another ruse. Yesterday, both the U.S. House of Representatives and the Senate Armed Services Committee voted to keep the F-22 on its wings.

While the U.S. House of Representatives reserved a berth for it in the $550.4 billion defense authorization bill for fiscal 2010 it approved, the members of the Senate Armed Services Committee approved their version of the 2010 defense authorization bill, which included $1.7 billion in funding for seven more F-22 fighters.

This does not ensure all roses ahead for LMT, though. An extension of the lifeline of F-22 contradicts the presidential policy of defense cuts, and the threat of a White House veto overhangs.

All in all, a bloodbath is virtually ensured in front of the full Senate. However, with F-22s fortunes tied to 25,000 direct and 9,000 indirect workers spread over more than 40 states, we wonder if the Obama Administration will risk the hostility that an opposition will involve.

The decision was influenced by recent developments in Iran and North Korea, amid continued interest from Japan for F-22 procurement. However, export of the F-22 has been banned under an amendment by the House Appropriations Committee since 1998. This new lease on life will help to keep the F-22 assembly line open till such issues are resolved.

Subsequent to the end of the first quarter, LMT's backlog was $80.8 billion, up 8.0% sequentially and representing approximately 1.8x 2009 of estimated sales. The stock, with a high dividend yield of 2.81, has gone up more than 18% over the past three months, and gives us enough confidence to reiterate our BUY rating on LMT.
Read the full analyst report on "LMT"
Zacks Investment Research

War Stocks

Fred Fuld — Fri, 19 Sep 2008 06:39:00 +0000

If you still haven't put any defense and aerospace stocks in your portfolio, you should seriously consider doing so before October. There are plenty of these 'war' stocks to choose from including ones that pay high yields. Here are some that you may want to site your scopes on and possibly pull the trigger. All of these have market caps over $1 billion.

Alliant Techsystems Inc. (ATK) manufactures and markets aerospace and defense products and ammunition. The stock has a PE of 16, and a PEG of 1.56.

Boeing (BA) makes and markets jets, military aircraft, missile defense systems, satellites, and launch systems. The stock has a PE of 11, a PEG of 0.83, and pays a yield of 2.8%.

CAE Inc. (CGT) makes and markets simulation equipment and services to the civil aviation industry, military organizations, and defense organizations. The stock has a PE of 17, and pays a yield of 1.2%.

DRS Technologies Inc. (DRS) a provider of defense electronic products, defense systems, and military support services. The stock has a PE of 19, a PEG of 1.34 , and pays a yield of 0.2%.

Elbit Systems Ltd. (ESLT) is an Israeli company that makes unmanned air vehicles; advanced electro-optic and space technologies, electronic warfare suites, airborne warning systems, electronic intelligence systems, military communications systems. The stock has a PE of 18, a PEG of 1.77, and pays a yield of 1.7%.

Embraer, also known as Empresa Brasileira De Aeronutica S.A. (ERJ) based in Brazil, makes and markets jets and aircraft for defense and civil aviation markets. The stock has a PE of 14, a PEG of 0.86, and pays a yield of 3.9%.

General Dynamics Corp. (GD) manufactures aviation products, combat vehicles, weapons systems, and munitions. The stock has a PE of 14, a PEG of 1.32, and pays a yield of 1.7%.

Goodrich Corp. (GR) makes and markets components and systems for the commercial and general aviation airplane markets, and the defense and space markets. The stock has a PE of 10, a PEG of 0.62, and pays a yield of 2%.

Honeywell International Inc. (HON) is involved in the business of aerospace, automation solutions, specialty materials, and transportation systems. The stock has a PE of 13, a PEG of 1.05, and a yield of 2.5%.

Lockheed Martin Corporation (LMT) manufactures military aircraft, and air vehicles, including the F-35 Joint Strike Fighter, the F-22 air dominance attack aircraft, and the F-16 multi-role fighter. The stock has a PE of 15, a PEG of 1.25, and pays a yield of 1.6%.

Northrop Grumman Corp. (NOC) provides aerospace products, electronics, and shipbuilding to the military, government, and commercial customers. The stock has a PE of 13, a PEG of 1.03 , and pays a yield of 2.5%.

Raytheon (RTN) has six divisions: Integrated Defense Systems, Intelligence and Information Systems, Missile Systems, Network Centric Systems, Space and Airborne Systems, and Technical Services. The stock has a PE of 15, a PEG of 1.11, and pays a yield of 2%.

Rockwell Collins Inc. (COL) makes and markets communications and aviation electronics. The stock has a PE of 13, a PEG of 0.8, and pays a yield of 2%.

If you like high yield stocks, you should also consider Top Monthly Dividend Stocks, Top Yielding NYSE Stocks, and Stocks with Tax Free Dividends.

Author does not own any of the above.

By Stockerblog.com

The Bulls Took Over Today – Closing Market Commentary

Alex Kolb — Thu, 18 Sep 2008 00:00:00 +0000

Keep your seatbelts fastened. The rollercoaster ride is not over yet. After plunging 449 points Wednesday, the Dow soared 410 points today. Such wide moves have been the norm this week on unprecedented events like the fall of Lehman, Bank of AmericaÂ’s (BAC) purchase of Merrill Lynch (MER) and the governmentÂ’s bailout of American International Group Inc. (AIG).

The unprecedented event that drove much of todayÂ’s gain was a report that the federal government may create an entity that will take over banks' bad debt. The entity would be similar to the Resolution Trust Corp. that was established during the savings and loan debacle of the late 1980s and early 1990s.

Earlier today, investors awoke to the news of the Fed, the European Central Bank, the Bank of England, the Bank of Japan and the Swiss National Bank all agreeing to infuse as much as $180 billion into the financial structure in order to help ease the calamities being experienced by financial markets worldwide.

ThursdayÂ’s Dow closed at 11,019.69 after the 410-point, or 3.86%, gain. The Standard & Poor's 500 index jumped 50.01 points, or 4.32%, to 1,206.60. The Nasdaq composite index picked up 100.25 points, or 4.78%, ending the session at 2,199.10.

TodayÂ’s other market moving news included Morgan Stanley (MS) talking to Wachovia (WB) about a possible merger and Washington Mutual Inc.(WM) putting itself on the auction block.

The price of oil moved up again after yesterdayÂ’s climb. Oil for October delivery increased 72 cents, settling at $97.88 a barrel on the New York Mercantile Exchange. The advance occurred on a weaker dollar and news of Nigerian militants increasing their attacks on oil companies, causing supply disruption concerns.

Gold also staged another move forward after yesterdayÂ’s record jump. The precious metal surged $50.20 today to $900.70 an ounce on the New York Mercantile Exchange.

The Focus List

Our Focus List participated in todayÂ’s rally by gaining 2.66% for the day.

Perrigo Co. (PRGO) continued its bullish run, ascending 7.33% Thursday after WednesdayÂ’s 2.93% gain and a 3.60% increase on Tuesday. There were no major developments today. However, yesterday the company was the subject of an analyst upgrade.

PRGO also recently announced that it acquired drug and nutritional products maker JB Laboratories for about $44 million in cash. PRGO mentioned that the acquisition is expected to add more than $70 million of annual sales.

Lockheed Martin Corporation (LMT) was another big Focus List gainer, jumping 7.35% for the day. Analysts boosted earnings estimates for this year and next by a penny over the past week. Year 2008 forecasts are at $7.72 per share, 2009 projections are at $8.39.

Another upward estimate revision that recently took place was the increase that Wabtec (WAB) saw for year 2009. Current earnings expectations of $3.08 per share are above last weekÂ’s $3.04.
"PRGO" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research