Mercury Systems MRCY was recently awarded a $10-million contract by a leading defense prime contractor. Per the terms of the deal, Mercury is required to provide an innovative pilot controller interface for the prime contractor’s airborne radio modernization program. The order is expected to be shipped over the next several years.
The radio system is being built specifically for missions that depend on beyond the line-of-sight range. The system also requires to be space-efficient and provide affordable and modular communications connection.
Continued Flow of Contracts
The continued flow of orders highlights MRCY’s commitment to developing compelling advanced radio frequency conversion and digital signal processing technologies and making them more accessible to the defense industry.
Mercury is benefiting from modernization in radar, electronic warfare and C4I, which is providing it with new opportunities in weapon systems, space, avionics processing, mission computing and embedded rugged services. Its domain expertise in analog and digital integration has helped it build a solid business relationship with defense and aerospace prime contractors for a long time.
Mercury Systems Inc Price and Consensus
Mercury Systems Inc price-consensus-chart | Mercury Systems Inc Quote
Last week, Ball Aerospace selected it to enhance the data recording and storage performance for its methane monitoring satellite, MethaneSAT. Last month, MRCY introduced the first-ever Avionics Modular Mission Platform computer aligned with the sensor open systems architecture specification to enhance decision accuracy and response time for pilots, bringing safety and higher capability to pilots and aircraft.
In May 2022, Mercury entered a multi-year agreement to collaborate with Lockheed Martin LMT to develop and manufacture new sensor processing technologies at its Geneva-based facility to address the mission-critical needs of the aerospace and defense industry.
Through the $40-million worth contract, Mercury and Lockheed Martin intend to deliver the world’s most advanced airborne defense systems to Switzerland and other countries. This, in turn, is aimed at the enhancement of Swiss national security, an expansion of job opportunities and market access to local Swiss industries in the long run.
In April, the company secured a $14-million contract from a leading defense prime contractor for providing system-in-package assemblies for an airborne secure processing application.
Mercury’s continued efforts and investments resulted in the successful completion of deals and created about $800 million worth of potential C4I opportunities based on the estimated lifetime value of its top 30 programs.
Zacks Rank & Stocks to Consider
Currently, Mercury carries a Zacks Rank #3 (Hold). Shares of MRCY have rallied 10.9% year to date (“YTD”).
Some better-ranked stocks worth considering from the broader technology sector are ON Semiconductor ON and Analog Devices ADI, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ON's second-quarter 2022 earnings has been revised to $1.26 per share from $1.05 over the past 60 days. For 2022, earnings estimates have moved north by 17.5% to $4.91 per share in the past 60 days.
ON's earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 2.8%. Shares of ON have plunged 24.7% YTD.
The Zacks Consensus Estimate for Analog Devices' third-quarter fiscal 2022 earnings has been revised upward by 24 cents to $2.42 per share over the past 60 days. For fiscal 2022, earnings estimates have moved north by 9.6% to $9.24 per share in the past 60 days.
Analog Devices' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 7.7%. Shares of ADI have decreased 16.2% YTD.
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Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
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