Boeing (BA) Delivers 2 Satellites for ULA's Atlas V Rocket
The Boeing Company BA recently announced that it has delivered two satellites, SES-20 and SES-21, to SES, a leading global content connectivity service provider, thus assisting the latter in its consistent delivery of its C-band broadcast and radio services, coupled with critical data network services, in the coming months. The satellites are part of the twin spacecraft on the United Launch Alliance (“ULA”) Atlas V rocket.
Details of the Satellites
The SES-20 and SES-21 are the third dual-launch configuration of 702SPs (small platform). Hence, it is imperative to mention that high-power 702 satellite platforms are designed to integrate with ViaSat-3 payloads, which can effectively provide a boost for industry-leading residential services and video streaming for commercial airlines, business jets and high-value government transport.
The SES 20 and 21 are two C-band communications satellites that have been built by Boeing to assist the Federal Communications Commission’s (“FCC”) migrate spectrum for use in terrestrial 5G networks.
What’s Favoring Boeing?
Boeing’s capability to build satellites that provide increased capability, flexibility and performance results in multiple order wins for the company. BA has delivered more than 300 satellites to commercial and government customers globally.
Meanwhile, its ability to continuously evolve and emerge in the satellite manufacturing space leverages the company to win more such contracts going forward, like the latest one. This, in turn, is likely to bolster its earnings from the satellite business segment.
Peer Moves
The tremendous support from the U.S. Government, coupled with increasing space infrastructure budgets, is likely to usher in huge contracts for companies in the satellite manufacturing space. This is likely to benefit Boeing, which already enjoys an established position in the satellite space.
A few companies that can enjoy the perks of the strong demand are Lockheed Martin LMT, Kratos KTOS and Northrop Grumman NOC.
Lockheed Martin’s Space business segment is engaged in the research and development, design, engineering and production of satellites, space transportation systems, and strategic, advanced strike and defensive systems. Space provides network-enabled situational awareness and integrates complex space and ground global systems to help customers gather, analyze and securely distribute critical intelligence data.
Lockheed Martin’slong-term earnings growth rate is pegged at 5.5%. LMT shares have risen 19.9% in the past year.
Kratos has deep experience in delivering a large set of integrated products, antennas and equipment as a system to customers looking to implement large solutions, such as ground stations and gateways, for a range of applications, including Telemetry Tracking & Command, satellite communications and spectrum regulation.
The Zacks Consensus Estimate for Kratos’ 2022 sales suggests a growth rate of 11.4% from the prior-year period. KTOS delivered an earnings surprise of 133.3% in the last reported quarter.
Northrop Grumman is an industry pioneer in the design and production of commercial satellites as well as the incorporation of civil and military-hosted payloads on commercial spacecraft. Northrop Grumman’s GEOStar geostationary Earth orbit commercial satellites are among the industry’s best small and medium-class communications satellites for 2 to 8 kW missions.
Northrop Grumman has a long-term earnings growth rate of 2.2%. NOC’s investors have gained 34.8% in the past year.
Price Performance
Shares of Boeing have rallied 28.1% in the past three months compared with the industry’s rise of 4.4%.
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Zacks Rank
BA carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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