Lockheed to Maintain PTDS for Army - Analyst BlogWednesday, October 19, 2011
Defense contractor Lockheed Martin Corporation (LMT) announced that it received a contract from the U.S. Army worth $383 million to maintain, operate and sustain the Persistent Threat Detection Systems (“PTDS”).
PDTS is a helium filled aerostat, which is a highly effective, cost efficient, surveillance and communication system for the Army. The system supports force-protection and counter-IED (improvised explosive devices) missions. Armed with multiple sensors, this aerostat-based system is deployed in combat areas, functional 24x7 with the ability to transmit 360 degree pictures of troops on the ground.
The constant availability of intelligence helps the Army to safeguard its personnel and high-valued assets deployed in the combat fields of Iraq and Afghanistan. Lockheed’s expertise in this field has been duly recognized by the Army resulting in a steady flow of contracts to maintain vital equipments.
In June 2011, Lockheed was awarded a contract worth $184.3 million to manufacture 29 PTDS for the coalition forces in Afghanistan. Prior to that, in June 2010, the U.S. Army had awarded a $142 million contract to produce PTDS. Lockheed Martin had delivered its first PTDS unit to the Army in 2004. The current contract to maintain the PTDS system is a step ahead for the company and an affirmation of their consummate skill in surveillance.
Lockheed's second quarter earnings per share of $2.06 surpassed our expectation as well as year-ago results. The Zacks Consensus Estimates for third-quarter 2011, fiscal year 2011 and fiscal year 2012 are, respectively, $1.81 per share, $7.54 per share and $8.68 per share.
Lockheed currently retains a Zacks #3 Rank, which translates to a short-term Hold rating. The company primarily competes with The Boeing Co. (BA), Northrop Grumman Corporation (NOC) and Raytheon Co. (RTN).
Based in Bethesda, Maryland, Lockheed Martin is a global security company that is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.
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