Key Issues OCX ACV fielding USAF 'reoptimization' planning
Despite an expected downturn in federal defense spending, the Wall Street analysis firm Credit Suisse is fairly bullish on Lockheed Martin's growth prospects, according to a research note issued this morning:
* LMT Highlights Growth Lanes, but We Remain Sidelined on Macro: Unlike some defense companies who have capitulated to unrelenting spending pressure, LMT maintains confidence in its growth. If all goes well, we agree LMT is the premier growth story in large cap defense. As such, we review major growth programs inside, but note that ultimately we think defense stocks will continue to trade with the forest, instead of the trees for now. Consequently, we remain Neutral while the deficit battle unfolds.
* F-35 Milestones Key for Program in 2011, but Not Highly Impactful on EPS [earnings per share]: After earning only 20% of potential award fees on F-35 in 2010 and forfeiting the remainder, mgmt is laser focused on meeting milestones to prove the program is on track. We estimate each milestone translates into a little over $0.01 in annual EPS, so see these as qualitatively important for program continuity, but quantitatively insignificant from an EPS perspective.
Check out InsideDefense.com's coverage of Lockheed's conference call with analysts yesterday:
Joint Strike Fighter Program Offers Lockheed $52.5 Million In Incentives in 2011
Lockheed Martin stands to earn as much as $52.5 million in 2011 if it can meet five key benchmarks associated with the Joint Strike Fighter's development schedule, the company's chief executive officer said today.
Lockheed Delivers Joint Strike Fighter Contract Proposal
Joint Strike Fighter lead contractor Lockheed Martin has submitted its contract proposal for the fifth production lot of the F-35, the first step in a contracting process likely to last through the summer and into the fall.
Boeing is conducting its conference call right now. Click here to view the company's earnings statement, and stay tuned for any news from the call.