Dec. 25, 2015, 4:02 AM
- Northrop Grumman (NYSE:NOC) has won a contract worth $93M to build a full-scale demonstrator of a new unmanned spy plane that would operate on destroyers and frigates.
- Navy officials would like UAVs to carry out intelligence and surveillance measures from smaller warships, but current drones are unable to take off and land from confined spaces at sea and then stay airborne for long periods.
- Aerovironment (NASDAQ:AVAV), the only other competitor for the contract, did not submit a bid.
Dec. 16, 2015, 1:11 PM
- Northrop Grumman (NOC +0.2%) is upgraded to Overweight from Neutral with a $212 price target at J.P. Morgan, which says NOC best exemplifies the "safety and steadiness" that have led investors to defense stocks in turbulent markets.
- While NOC has easily outperformed the market YTD, the firm says NOC is no more expensive than other pure play defense names Lockheed Martin and Raytheon (RTN +0.3%); JPM also anticipates a slightly better EPS growth profile the next three years.
- RTN remains JPM's other Overweight-rated defense prime, as it offers visibility and cash return, and is a play on increasing international demand, especially from the Middle East.
Dec. 15, 2015, 9:27 AM
- With two design teams working on the new aircraft, Northrop Grumman (NYSE:NOC) has unveiled its vision of a so-called sixth-generation fighter, a laser-firing warplane that looks like a cross between the B-2 bomber and the X-47B drone.
- One of the keys to the new weapon, which is in the earliest stages of planning, will be heat management.
- As Northrop president for aerospace Tom Vice notes - lasers operate at 33% efficiency when all goes well. Add in all the aircraft's power and thrust systems - that's a lot of heat to dissipate.
Dec. 15, 2015, 9:12 AM
- The U.S. Navy has awarded Northrop Grumman (NYSE:NOC) a base year contract valued at $19.8M, with a total potential value of $47.8M over five years, to develop the replacement inertial navigation system deployed on most Navy combat and support ships.
- INS-R supports the new Assured Positioning Navigation and Timing architecture, which provides increased navigation accuracy in challenging maritime combat environments.
Nov. 26, 2015, 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
Nov. 20, 2015, 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
Nov. 19, 2015, 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%.
Nov. 19, 2015, 5:57 AM
- Northrop Grumman (NYSE:NOC) declares $0.80/share quarterly dividend, in line with previous.
- Forward yield 1.7%
- Payable Dec. 16; for shareholders of record Nov. 30; ex-div Nov. 25.
Nov. 17, 2015, 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%.
Nov. 16, 2015, 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%).
Nov. 13, 2015, 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.
Nov. 12, 2015, 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.
Nov. 12, 2015, 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.
Nov. 10, 2015, 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)
Nov. 6, 2015, 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)
Nov. 4, 2015, 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.
Northrop Grumman Corp. is a global security company which provides innovative systems, products and solutions in unmanned systems, cyber, command, control, communications and computers intelligence, surveillance, reconnaissance and logistics and modernization to government and commercial... More
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