FLIR Systems and Lockheed Martin Under Review: Aerospace / Defense Sector Takes Flight
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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