Thu, Nov. 26, 5:03 AM
- President Obama has signed a sweeping defense policy bill into law despite provisions that make it harder to close the Guantanamo Bay military prison.
- The legislation authorizes $607B in annual defense spending and "includes vital benefits for military personnel, facilitates ongoing operations around the globe, and important reforms to the military retirement system."
- Related tickers: GD, BA, NOC, LMT, RTN, OA, HII, HON, UTX, ITT, TXT, LLL, COL
Fri, Nov. 20, 7:58 AM
- With the ink barely dry on Northrop Grumman's (NYSE:NOC) contract to build a new fleet of long-range bombers for the U.S. Air Force, a group of lawmakers and defense strategists are already calling for the Pentagon to double its order, Forbes reports.
- "A modernized and capable Air Force bomber force of 150 to 200 aircraft is required to maintain America’s asymmetric advantage in long-range precision strike over any potential future adversary," states a study published by the Mitchell Institute for Aerospace Studies.
- Last month the Pentagon awarded Northrop the first portion of a planned $100B contract to develop and build 80-100 new stealth bombers.
- NOC +0.7% premarket
Thu, Nov. 19, 3:09 PM
- The NATO treaty calls for its 28 signatories to have a common goal of defense spending equal to 2% of GDP, says David Rosenberg. Not all do, with France (at 1.8%), Germany (1.2%), Italy (1%), and Canada (1%) notably falling short.
- Following the terrorist attacks, it's no surprise there will likely be renewed commitments to hitting that target. What would it mean in terms of dollars? More than $100B in renewed defense spending from the NATO countries alone, says Rosenberg.
- For the week, Northrop Grumman (NYSE:NOC) is up 5.1%, Raytheon (NYSE:RTN) 7.4%, Lockheed Martin (NYSE:LMT) 5.1%, General Dynamics (NYSE:GD) 3.4%.
Thu, Nov. 19, 5:57 AM
Tue, Nov. 17, 12:57 PM
- Rising interest rates have historically been good news for Boeing (BA +1.1%) and other aerospace and defense companies, Canaccord analysts say, as strengthening commercial orders correspond with outperformance by both Boeing stock and the broader sector.
- Commercial transport orders over the past three significant tightening cycles rose by an average of 7% and 140% in the 12- and 24-month time periods after rates started to increase, and total commercial backlog increased over the same periods by an average of 3% and 43%, the firm says.
- BA stock has outperformed the broader market over the past two tightening cycles by an average of 19%-20% annually while rates are rising, Canaccord adds.
- Also today: LMT +1.8%, RTN +1.6%, COL +1.3%, NOC -0.3%.
Mon, Nov. 16, 10:33 AM
- Aerospace and defense shares are on the rise after calls to increase efforts to crush ISIS, the terrorist group responsible for Friday's attacks in France.
- Previously: World leaders wrap up G20 summit (Nov. 16 2015)
- Previously: French warplanes strike Islamic State targets in Syria (Nov. 15 2015)
- Related tickers: General Dynamics (GD +0.6%), Boeing (BA +0.2%), Northrop Grumman (NOC +3.2%), Lockheed Martin (LMT +2.5%), Raytheon (RTN +2.4%), Orbital ATK (OA +3.8%), Rolls-Royce (OTCPK:RYCEY +2.2%), Huntington Ingalls (HII +1.1%), Honeywell (HON +0.9%), United Technologies (UTX +0.4%), Airbus (OTCPK:EADSF), ITT (ITT +0.6%), Textron (TXT +1.7%), L-3 Communications (LLL +2.3%), BAE Systems (OTCPK:BAESY +2%), Finmeccanica (OTCPK:FINMY), Rockwell Collins (COL +1.7%).
Fri, Nov. 13, 11:40 AM
- Northrop Grumman (NOC -0.1%) is optimistic about sales of its E-2D Advanced Hawkeye airborne early warning aircraft to countries in the Persian Gulf, Asia and North Africa in coming years despite the loss of an order from the UAE to Saab, company execs tell Reuters.
- A sector director with NOC's international mission solutions business says his company remains in discussions with a number of other countries, declining to name them specifically but noting that France, Japan, Taiwan and Egypt operate the older model E-2C aircraft.
- NOC says it does not view the contract loss to Saab as a setback since it has other strong business prospects in the Gulf region and around the world.
Thu, Nov. 12, 12:58 PM
- The U.S. Air Force has ordered Northrop Grumman (NOC -0.5%) to stop work on its recently awarded long-range strike bomber contract after Boeing ([BA]] -1.4%) and Lockheed Martin (LMT -0.8%) formally protested against the selection process, Reuters reports.
- Analysts have said the bomber deal could be valued at up to $80B if the Air Force buys all 100 stealth bombers now planned.
Thu, Nov. 12, 12:21 PM
- Raytheon (RTN -0.4%) is upgraded to Buy from Hold with a $135 stock price target at Argus, which expects management's focus on international and cybersecurity businesses to generate stronger growth over the next two years.
- Argus says RTN's business mix appears favorable compared to most defense industry peers, and given rising geopolitical threats it likes the emphasis on advanced missile defense, electronic warfare and cybersecurity systems.
- RTN also is generating strong cash flow and aggressively returning cash to shareholders through increased dividends and share buybacks, the firm says.
- Argus also raises Northrop Grumman's (NOC -0.5%) price target to $205 from $195, citing a clean balance sheet and management's history of meeting and beating analyst expectations.
Tue, Nov. 10, 3:23 AM
- U.S. Air Force Secretary Deborah James is defending the process used to select Northrop Grumman (NYSE:NOC) to build the next-generation Long Range Strike Bomber, stating it was "very deliberate" and included a number of independent reviews.
- James said the Air Force stood by its decision, but would wait to see how the U.S. Government Accountability Office ruled on a formal protest filed by Boeing (NYSE:BA) and Lockheed Martin (NYSE:LMT). A ruling is due by mid-December.
- Previously: Boeing protests bomber award (Nov. 06 2015)
Fri, Nov. 6, 8:49 AM
- Boeing (NYSE:BA) discloses it will formally protest the Air Force's award of the Long Range Strike Bomber to Northrop Grumman (NYSE:NOC).
- The company was debriefed on October 30 concerning why its proposal with team-mate Lockheed Martin (NYSE:LMT) had not been accepted, but an internal review concluded there was extensive procedural basis for challenging the award and found the process "fundamentally flawed."
- Previously: Boeing set for hard decision on bomber-program protest (Nov. 04 2015)
Wed, Nov. 4, 8:49 PM
- Boeing (NYSE:BA) may decide as soon as tomorrow whether it's protesting a contract win by Northrop Grumman (NYSE:NOC) to develop the Air Force's Long Range Strike Bomber.
- The hard-fought contract is for a $55B program to build 100 planes. "We continue to evaluate our options," said Boeing's Todd Blecher, but the company and its partner Lockheed Martin (NYSE:LMT) are reluctant to proceed if the case looks weak so as not to annoy the Pentagon and delay the program.
- And it would be an uphill battle with a heavily classified program. Legally, companies have 10 days after an agency debrief to file a protest with the GAO; Northrop was chosen on Oct. 27.
Wed, Oct. 28, 4:47 PM
- Northrop Grumman (NYSE:NOC) has the capacity to bid on other major upcoming Pentagon contract awards even after securing its huge deal to build a fleet of new bombers, CEO Wes Bush said in today's earnings conference call.
- "We have the resources in place [and] we are ready to get to work," Bush said on the deal to build as many as 100 long-range bombers but declined to comment further, citing its classified nature.
- The CEO also said the company does not plan to follow some rivals and carve out its services business, as the recent restructuring aims at speeding product development and reducing costs rather than repositioning its portfolio.
- Analysts estimate the bomber award could add $1B or more to NOC's annual revenue - which reached $24B last year - if it successfully navigates an expected protest from losing companies Boeing (NYSE:BA) and Lockheed Martin (NYSE:LMT).
- Credit Suisse’s Robert Spingarn calculates ~5.4% upside for NOC, and that the win was a pleasant surprise for shareholders, as the Boeing-Lockheed team was the favorite.
Wed, Oct. 28, 9:12 AM
Wed, Oct. 28, 8:15 AM
- Net income of $516M, or $2.75 per diluted share vs. $473M, or $2.26 per diluted share in the third quarter of 2014.
- The results come just hours after Northrop (NYSE:NOC) won a massive Long Range Strike Bomber contract from the Pentagon.
- During the quarter, the company repurchased 5.6M shares of its common stock for $944M.
- Total backlog as of Sept. 30 was $35.9B compared with $38.2B a year ago.
- The company raised its full-year earnings outlook to a range of $9.70-$9.80 per share from prior guidance of $9.55-$9.70 per share, and narrowed its revenue guidance to $23.6B-$23.8B.
- Q3 results
Wed, Oct. 28, 6:38 AM
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