Northrop Grumman CorporationNYSE
Yesterday, 8:33 AM
- Net earnings of $602M, or $3.35 per diluted share vs. $516M, or $2.75 per diluted a year ago.
- Sales by segment: Aerospace +9%; Mission +1%; Technology flat.
- During the quarter, the company repurchased 2.2M shares of its common stock for $470M.
- Raised outlook for 2016: Diluted EPS of $11.55-$11.75 (from $10.75-$11.00), on sales of $23.1B-$24.1B (from $23.5B-$24B).
- NOC +1.8% premarket
- Q3 results
Yesterday, 6:47 AM
Tue, Oct. 25, 6:47 PM
- Northrop Grumman's (NYSE:NOC) winning bid to develop and build the U.S. Air Force's new bomber held “significant structural advantages” over a competing proposal by Boeing (NYSE:BA) and Lockheed Martin (NYSE:LMT), according to a declassified version of a February ruling from the Government Accountability Office.
- The “significantly lower proposed prices” for initial production “created a near-insurmountable obstacle” to Boeing in the Air Force’s calculation of realistic costs, according to the GAO report, which also said its review of Boeing’s protest filed after the award to NOC "provides no basis on which to sustain the protest.”
- After rejecting Boeing’s challenge for the bomber program valued at as much as $80B, the GAO initially had kept its findings secret.
Tue, Oct. 25, 5:36 PM
- Lockheed Martin (NYSE:LMT) soared 7.3% in the stock's best showing in seven years, after Q3 results easily topped Wall Street estimates and the company raised its full-year outlook.
- LMT's "outlook for 7% revenue growth next year is pretty impressive," says Bloomberg aerospace and defense analyst Douglas Rothacker. “You’d be hard-pressed to find a defense contractor generating growth like that.”
- "The aging of equipment in allied countries, coupled with an expanding level of global security needs, are creating significant demand for our portfolio of products in multiple regions around the world," CEO Marillyn Hewson said during today's earnings conference call.
- Overall, Hewson says LMT's biggest growth area remains the F-35 followed by missile defense; only 10 F-35s were produced in Q3 vs. 12 for the year-ago quarter, which management attributes to a problem with the insulation in the plane's fuel lines and fuel tanks, and the subsequent fix.
- Other defense stocks rose today on the back of LMT's positive results; NOC +1.4% and RTN +1.5% are due to report quarterly results later this week.
Tue, Oct. 25, 5:30 PM
- AB, AGCO, AIT, ALLY, AOS, AVX, AVY, BA, BCO, BEN, BIIB, BOKF, BSX, CFR, CG, CMCSA, DTE, ENTG, EVR, EXAS, FDML, FLIR, GD, GNRC, GRA, GRMN, GRUB, HBAN, HES, HLT, IR, KO, LEA, LH, LRN, LUV, MDCO, MDLZ, MKTX, MMYT, NAP, NDAQ, NEO, NOC, NSC, NYCB, OC, PAG, PB, POL, RES, ROL, SAIA, SIX, SLAB, SLGN, SMED, SONS, SPG, STRA, STT, UCBI, VG, VLY, VNTV, WEC, WM, WOOF, WYN
Thu, Oct. 6, 3:53 PM
- Northrop Grumman (NOC +0.8%) is initiated with an Outperform rating and $260 price target at Baird, which says NOC is the best growth profile stock in the large-cap defense space.
- The firm forecasts NOC revenue growth to accelerate to the mid-single digits during 2017-20, reflecting the ramp in several key platforms such as the F-35 ramp, Triton UAV, E-2D and the B-21 bomber.
- Baird believes rising defense budgets, strategic portfolio wins and a highly respected management team continue to make NOC an excellent portfolio stock, and says pullbacks should be bought for the long term.
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.