LOCKHEED MARTIN CORP (LMT) 76.10 $0.82 (1.09%) 10:58PM (15 mins delay)

On Thursday, the media got word from the U.S. Air Force of successful testing of Lockheed Martin’s (LMT) new and improved long range missiles. The successful testing, in which 15 out of 16 missiles got the desired result, should clear the way for up to $4.4 billion in contracts through 2023 after a Pentagon review of the program in December. Back in June, an Air Force spokesman said that the program faced possible termination if these tests were unsatisfactory. The previous three tests were far less successful with just six out of ten missiles detonating on impact or hitting the desired target. Improvements to manufacturing processes and quality of inputs were likely the key to the new found success.

“Lockheed has contracts so far to build 1,053 Joint Air-to- Surface-Standoff Missiles and has received about $600 million. The company would receive about $4.4 billion more from building the remaining 3,847 the service plans to buy.