Wed, Sep. 21, 8:39 AM
Tue, Sep. 13, 5:06 PM
- Boeing (NYSE:BA) and Saab (OTC:SAABF) today unveiled their entry into the U.S. Air Force's $11B competition for a new jet to train fighter and bomber pilots, with the company’s St. Louis hub operations on the line.
- The Boeing-Saab bid faces a fight with Lockheed Martin (NYSE:LMT), Northrop Grumman (NYSE:NOC) and Raytheon (NYSE:RTN) for the contract to produce 351 jets through the T-X advanced trainer program, and the winning entry will replace the aging T-38 fleet on which U.S. military pilots have honed their flying skills since 1961.
- The Air Force is not expected to release its final criteria until December, picking a winner next year who would begin production in fiscal 2018, and the new trainer is not spected to begin preparing a new generation of pilots for combat for another eight years.
Thu, Aug. 25, 11:47 AM
- L-3 Communications (LLL +1.5%) is J.P. Morgan's new top pick among defense stocks, upgrading shares to Overweight from Neutral with a $182 price target, raised from $158, while downgrading Northrop Grumman (NOC +0.4%) to Neutral from Overweight with a $231 price target.
- The firm expects L-3 to generate 5% compound annual free cash flow growth through 2020, the second highest level among the defense stocks it covers, while the stock trades at the second lowest free cash flow multiple among the defense stocks covered.
- But JPM recommends taking profits on NOC, saying cash flow estimates are below consensus due to capex projections, the company's cash return yield is no longer exceptional, and it has a low dividend yield.
- The firm maintains Lockheed Martin (LMT +0.3%) with a Neutral rating and $284 price target.
Thu, Aug. 18, 1:29 AM
Fri, Aug. 5, 8:33 AM
- Northrop Grumman (NYSE:NOC) has been added to a list of contractors awarded part of a contract to provide IT solutions to the agency under Twenty-one Total Technology Next-Generation (T4NG).
- The contract is worth $22.3B over the next ten years. The base is for five years with an additional five optional years.
Wed, Jul. 27, 1:35 PM
- Northrop Grumman (NOC -0.2%) is little changed after posting a strong Q2 earnings beat on higher aircraft demand and raising its outlook for the full year.
- NOC says Q2 revenue in its aerospace business gained 4% Y/Y to $2.6B on higher volume for manned aircraft and autonomous systems programs, while revenue rose 2.4% in the mission systems segment and fell 2% in the technology services segment.
- NOC issues improved guidance for FY 2016, raises EPS to $10.75-$11.00 from its previous view of $10.40-$10.70 vs. $10.70 analyst consensus estimate, while reaffirming its full-year revenue outlook of $23.5B-$24B vs. $23.78B consensus.
Wed, Jul. 27, 6:25 AM
Tue, Jul. 26, 5:30 PM
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Mon, Jul. 11, 12:30 PM
- The price of Lockheed Martin's (LMT +1.3%) F-35 fighter jet has dropped 57% as commercial sales ramp up, and "we're on a path to be down to a price of an $85M jet by 2019, which is comparable to a fourth generation aircraft," CEO Marillyn Hewson tells CNBC from the Farnborough air show.
- The CEO says LMT expects to sell 3,000 jets in coming decades, with production likely peaking at 170-180 planes/year around 2023, as countries around the world do not see global security challenges diminishing.
- Also, the U.S. Defense Department says it is extending by two years a project of cost-cutting initiatives for the Pentagon's costliest arms program, which includes an agreement by LMT and key suppliers Northrop Grumman (NOC +0.4%) and BAE Systems (OTCPK:BAESY +1.4%) to invest up to $250M in projects aimed at cutting the cost of operating and maintaining the jets, with a goal of saving $1B over five years.
- Shares earlier hit $256.32, an all-time high.
Mon, Jul. 11, 11:06 AM
- In a statement issued over the weekend, Dallas police named the robot used to kill gunman Micah Johnson - Northrop Grumman's (NOC +0.6%) Remotec Andros F5 .
- "The chief had two options and he went with this one. I supported him completely because it was the safest way to approach it," Dallas Mayor Mike Rawlings said on Face the Nation.
- A debate is stirring on how to handle this new use of police force, but it's not likely to become a common occurrence, in part because the Andros F5 costs upwards of $100K apiece.
Thu, Jun. 30, 8:06 AM
- Northrop (NYSE:NOC) is working to convince the Pentagon that it's solved manufacturing flaws that resulted in defective wings for the new Triton drone, as it prepares to ask defense officials to approve the aircraft's production.
- The Navy wants to spend as much as $10.2B for production of 68 of the pilotless aircraft, including $4B by 2021 in the "low-rate initial production" phase.
Mon, May 23, 3:21 AM
- President Obama kicked off his three-day visit to Vietnam with an announcement declaring the end of a U.S. arms embargo on the country, a ban that had been in place for decades.
- "We've come here as a symbol of the renewed ties....and the comprehensive partnership we have created over the course of my presidency," Obama said at a press conference.
- The trip will also see the nations discuss the Trans-Pacific Partnership, which is expected to usher in a new period of growth for export-oriented Vietnam.
- Related tickers: GD BA, NOC, LMT, RTN, OA, HII, HON, UTX, OTCPK:EADSF, ITT, TXT, LLL, OTCPK:BAESY, OTCPK:FINMY, COL
- ETFs: VNM
Thu, May 19, 2:56 PM
- Lockheed Martin (LMT -1.2%) is downgraded to Sector Perform from Outperform with a $244 price target at RBC Capital, noting that the stock's valuation has reached a 10-year high.
- The firm attributes the stock's elevated valuation to the F-35 finally reflecting an improved outlook, citing a material pickup in deliveries; the program is expanding to 30% from 20% of LMT's sales by 2018.
- RBC sees reduced cash deployment options ahead, explaining that $1.5B in cash contributions to LMT's pension is due in 2018 and 60% of the company's estimated 2016 EPS is represented by its dividend.
- RBC also downgraded Northrop Grumman (NOC -1.5%) on valuation concerns.
- Now read Large growth opportunities for Lockheed Martin
Thu, May 19, 9:47 AM
- Shares of Northrop Grumman (NOC -1.5%) are dipping in early trade after RBC Capital Markets downgraded the stock to Sector Perform from Outperform.
- "The downgrade is driven by the stock's strong performance and the consequent expansion of its valuation multiple," the firm said. "This puts Northrop at the highest valuation that we have seen in 10 years - and the only time that the valuation was higher was when the DoD budget was growing at a double digit rate in 2002-03."
- RBC Capital has a $222 price target on the defense company.
Tue, May 17, 5:20 PM
Tue, May 3, 11:30 AM
- Drexel Hamilton ups Northrop Grumman's (NOC -0.3%) price target to $235 from $207, and reiterated its Buy rating on the stock.
- "With what looks to be a transition year in 2016 topline-wise, we see growth accelerating in 2017 and we believe the combination of F-35 and B-21 could result in NOC having the best topline growth outlook in large-cap defense."