SANTA ANA, Calif. - Ducommun Incorporated (NYSE: NYSE:DCO), a provider of electronic and structural solutions for the aerospace and defense sectors, has announced securing two contracts worth over $50 million with Raytheon (NYSE:RTN) for the SPY-6 radar systems. The contracts include a $25 million follow-on order for a circuit card assembly currently in production and a new $25 million order for a different circuit card assembly.
These circuit card assemblies will be manufactured in Ducommun's Tulsa, Oklahoma facility, which is known for its engineering and manufacturing capabilities. Stephen G. Oswald, chairman, president, and CEO of Ducommun, expressed excitement over the company's deepening involvement in radar systems for defense, building on its existing missile systems portfolio.
The new contracts have contributed to Ducommun's backlog reaching a record high of over $1 billion, a development that Oswald suggests will benefit shareholders for the foreseeable future. Ducommun's relationship with Raytheon extends to providing a range of components and systems, including electronics, circuit card assemblies, harness cable assemblies, and structural products for various programs.
Ducommun, founded in 1849, has a longstanding history of delivering manufacturing solutions in the aerospace, defense, and industrial markets. The company focuses on electronic and structural systems to produce complex products for commercial aircraft, military and space programs, and industrial applications.
The information for this article is based on a press release statement from Ducommun Incorporated.
InvestingPro Insights
Following Ducommun Incorporated's (NYSE: DCO) announcement of securing significant contracts with Raytheon, real-time data from InvestingPro provides a deeper financial perspective on the company's current market standing. With a market capitalization of approximately $813.46 million, Ducommun is trading at an adjusted price-to-earnings (P/E) ratio of 30.37, which may suggest a high earnings multiple compared to industry peers. This aligns with one of the InvestingPro Tips indicating that the stock is trading at a high earnings multiple.
The company's revenue growth over the last twelve months as of Q4 2023 stands at 6.24%, reflecting a steady increase that could be a positive signal to investors. This growth is complemented by a gross profit margin of 21.6%, showcasing the company's ability to maintain profitability on its sales. Additionally, Ducommun has seen a significant return over the last week, with a 14.99% price total return, which could be of interest to short-term investors. This recent performance is highlighted as another InvestingPro Tip, underscoring the stock's noteworthy return in a brief period.
While analysts have revised their earnings expectations downwards for the upcoming period, they also predict that the company will be profitable this year. Furthermore, Ducommun's liquid assets exceed its short-term obligations, which may provide some reassurance regarding the company's financial health and its ability to meet its immediate financial commitments.
For those interested in a more comprehensive analysis, there are additional InvestingPro Tips available on the company's profile at https://www.investing.com/pro/DCO. Moreover, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering access to a suite of advanced financial tools and insights.
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