FLIR Systems and Lockheed Martin Under Review: Aerospace / Defense Sector
LONDON, February 13, 2013
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
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
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
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
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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