Lockheed Martin Corporation : FLIR Systems and Lockheed Martin Under Review: Aerospace / Defense Sector Takes Flight
02/13/2013| 08:05am US/Eastern
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LONDON, February 13, 2013 /PRNewswire/ --
Aerospace stocks are working hard to make a comeback but the industry still faces a
number of issues. While most of the aerospace stocks reported good quarterly numbers,they
failed to show growth momentum. The sector is also expected to be adversely impacted by
spending cuts. While at the moment,it is difficult to quantify the impact of
sequestration,defense spending is very likely to be slashed down. However,despite these
shortcomings,there are some promising stocks like FLIR Systems Inc. (NASDAQ: FLIR) which
can provide good returns in the short-term. Additionally,major companies like Lockheed
Martin Corp. (NYSE: LMT) are taking steps to minimize the impact of spending cuts.
StockCall has released free charting and technical research on these two aforementioned
companies. Register to read these reports at
http://www.stockcall.com/report
FLIR Systems Reports Q4 Results
FLIR Systems Inc. reported its fourth quarter results and while it missed estimates
for its revenue, it managed to outperform on the EPS front. Its revenue for the quarter
stood at $386.4 million, lagging behind consensus estimate of $395.8 million. However its
EPS of 52 cents surpassed analysts' estimate of 50 cents per share in income. The stock
grew 6 percent in the past 12 months and has generated Hedge Fund interest too. FLIR
Systems is included in the holding of Wallace R. Weitz, a celebrated value investor and
Farallon Capital. Sign up for the free report on FLIR Systems Inc. at
http://www.StockCall.com/LMT021313.pdf
FLIR Systems is going ahead with its plans to grow through mergers and acquisitions.
It recently finalized the acquisition of Traficon International NV and Lorex Technology.
Traficon acquisition cost $46 million for FLIR and will help the company in increasing its
presence in European countries. While the merger is expected to be neutral for FY 2013, it
will be accretive from then onwards. Lorex Technology, on the other hand, was bought for
$60 million. With these acquisitions, FLIR Systems will have the chance to expand into new
geographical markets and try new technologies.
Its stock is expected to respond positively to these new developments. Both the
acquisitions will have synergistic impact on the company's operations. With encouraging
quarterly results, the stock may provide good returns to its investors.
Lockheed Martin Tests New Spacecraft
Lockheed Martin is one of the frontrunners in the aerospace sector. The company
recently acquired a couple of contracts, which will help it in diversifying its revenue
stream. It is likely to be one of the biggest victims of defense spend cuts as government
contract contributes to over 80 percent of its revenue. However, in recent years, the
company diversified itself to newer venues like drone projects and communication systems.
It recently tested its new MAVEN spacecraft. Lockheed Martin Corp. free technical report
can be accessed by signing up at
http://www.StockCall.com/FLIR021313.pdf
Lockheed Martin lost 5 percent of its value on a YTD basis and its performance is
likely to remain subdued due to cuts. However, the stock offers a dividend yield of 5.27
percent, making it an attractive income stock. The stock currently trades at
Price/Earnings ratio of 10.44, which is more or less in-line with industry average.
Lockheed Martin is taking steps to contain its costs in order to deal with impending cuts.
The company also offered voluntary layoffs to its employees in its IT group.
The stock's future performance will greatly depend on its ability to generate new
revenue streams and manage costs.
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SOURCE StockCall.com
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