The Pentagon awarded $982 million in new defense contracts Thursday, handing out sizable contracts to several major defense contractors.
Among the publicly traded companies, the biggest winner was Exelis, now a subsidiary of Harris Corporation (NYSE: HRS). Exelis won a $97.3 million contract to supply the U.S. Navy with 46 AN/ALQ-214(V)4/5 integrated defensive electronic countermeasures -- onboard radio frequency jamming systems. These systems are used to protect Navy fighter aircraft such as the F/A-18 Hornet from hostile anti-aircraft missiles.
This contract, on which delivery is due in December 2017, is worth approximately 2% of Harris annual revenues, according to data from S&P Capital IQ. The stock is already up almost 15% year-to-date and as of this writing, was up another 1% on the deal announcement.
Another big winner for the day was Huntington Ingalls (NYSE: HII), which won a $93 million contract to pay for labor and the purchase of long lead-time materials needed for work it has been hired to do on Navy Ticonderoga-class guided missile cruisers.
And Lockheed Martin won more contracts (three in all) than any other single company Thursday:
- $50.9 million to supply an unspecified number of modernized laser range finder designator (M-LRFD) kits to the U.S. Army
- $24.9 million to do engineering and development work on AEGIS ship-defense systems for the new Australian Air Warfare Destroyer (AWD) shipbuilding program
- and $8.4 million for additional work on the Navy's Integrated Common Processor program. This funding increase raises the value of Lockheed Martin's underlying ICP contract to $97.8 million
This $19 trillion industry could destroy the Internet
One bleeding-edge technology is about to put the World Wide Web to bed -- and if you act soon, it could make you rich. Experts are calling it the single largest business opportunity of our time. The Economist is calling it "transformative." But savvy investors could someday call it "how I made my millions." Don't be late to the party -- click here for one stock to own when the Web goes dark.
Rich Smith has no position in any stocks mentioned.