Yahoo Finance Lockheed Martin (LMT) Deploys 10 Satellites for SDA's Mission
Lockheed Martin LMT recently launched 10 satellites into low-Earth orbit to support the Space Development Agency's (“SDA”) Tranche 0 Transport Layer (T0TL) mission. This launch should further strengthen Lockheed Martin’s position in the space satellite market.
Lockheed’s Place in Satellite Market
SDA’s Transport Layer aims to provide assured, resilient, low-latency military data and connectivity worldwide to the full range of warfighter platforms. To this end, it is imperative to mention that the satellites that Lockheed launched recently come with LMT’s SmartSat software, which makes it easier to dynamically add and quickly change missions in orbit through simple app uploads.
The satellites also host Link-16 radios, which enable sensor-to-shooter targeting by connecting systems that include fighter aircraft and Integrated Air and Missile Defense networks. This, in turn, will modernize the United States’ current capabilities to better support warfighter needs to act timely against threat warnings and provide situational awareness information across the range of military operations.
Such benefits offered by Lockheed’s satellites must have enabled the company to win the contract of building 36 Tranche 2 Transport Layer Beta satellites in August 2023 from the SDA. LMT is also producing 42 satellites for SDA's Tranche 1 Transport Layer, to be launched in 2024. Further, the company recently opened a satellite processing center to efficiently assemble, integrate and test these satellites.
These developments reflect the solid demand that Lockheed enjoys in the space surveillance market, with space-based assets being increasingly used in defending a nation against hostile attacks.
Growth Prospects
Per a report by the Research And Markets firm, the global military satellites market is expected to witness a CAGR of 4.2% during the 2023-2027 period. This should benefit Lockheed Martin, which provides national security space capabilities.
A few other defense players that can gain from the expanding military satellite market are Airbus SE EADSY, L3Harris Technologies Inc. LHX and Northrop Grumman Inc. NOC.
Airbus’ Defense and Space unit has delivered more than 70 Earth observation satellite systems, accumulating close to 600 years of in-orbit experience. The PeruSAT-1, a very high-resolution Earth observation satellite system, was built for the government and Space Agency of Peru, which provides high-quality imagery for both civil and military applications.
EADSY boasts a long-term earnings growth rate of 12.4%. The Zacks Consensus Estimate for Airbus’ 2023 sales indicates an improvement of 17.8% from that reported in 2022.
L3Harris is the prime contractor of Navigation Technology Satellite – 3 (NTS-3). The NTS-3, to be launched later this year, will provide for the safety and success of the warfighters with its accurate and uninterrupted positioning, navigation and timing technology. The company is expanding its satellite production site to include advanced production of unclassified satellites, which will deliver experimental capabilities for national defense.
LHX boasts a long-term earnings growth rate of 3%. The Zacks Consensus Estimate for L3Harris’ 2023 sales indicates an improvement of 8.9% from that reported in 2022.
Northrop Grumman's deep mission expertise gives it an edge in knowing what it takes to protect the warfighter, both in space and from space. In August 2023, NOC was selected by SDA to design and build 36 data transport satellites, the first space vehicles in the latest generation of its low-Earth orbit Proliferated Warfighter Space Architecture.
NOC boasts a long-term earnings growth rate of 4.1%. The Zacks Consensus Estimate for Northrop Grumman’s 2023 sales indicates an improvement of 5.6% from that reported in 2022.
Price Performance
In the past year, shares of LMT have gained 1.5% against the industry’s 6.6% decline.
Image Source: Zacks Investment Research
Zacks Rank
Lockheed Martin currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
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