Big Bank's Analyst Worries That Iran Deal Could Depress Weapons Sales
Could a deal to normalize Western
relations with Iran and set limits on Iran’s development of nuclear
technology lead to a more peaceful and less-weaponized Middle East?
relations with Iran and set limits on Iran’s development of nuclear
technology lead to a more peaceful and less-weaponized Middle East?
That’s what supporters
of the Iran negotiations certainly hope to achieve. But the prospect of
stability has at least one financial analyst concerned about its impact
on one of the world’s biggest defense contractors.
The possibility of an Iran nuclear deal depressing weapons
sales was raised by Myles Walton, an analyst from Germany’s Deutsche
Bank, during a Lockheed earnings call this past January 27. Walton asked
Marillyn Hewson, the chief executive of Lockheed Martin, if an Iran
agreement could “impede what you see as progress in foreign military
sales.” Financial industry analysts such as Walton use earnings calls as
an opportunity to ask publicly-traded corporations like Lockheed about
issues that might harm profitability.
sales was raised by Myles Walton, an analyst from Germany’s Deutsche
Bank, during a Lockheed earnings call this past January 27. Walton asked
Marillyn Hewson, the chief executive of Lockheed Martin, if an Iran
agreement could “impede what you see as progress in foreign military
sales.” Financial industry analysts such as Walton use earnings calls as
an opportunity to ask publicly-traded corporations like Lockheed about
issues that might harm profitability.
Hewson replied that “that really isn’t coming up,” but stressed that
“volatility all around the region” should continue to bring in new
business. According to Hewson, “A lot of volatility, a lot of
instability, a lot of things that are happening” in both the Middle East
and the Asia-Pacific region means both are “growth areas” for Lockheed
Martin.
