Thu, Feb. 11, 2:22 PM
- Boeing (BA -8.9%) maintains its share price plunge and is causing the Dow to underperform the other major averages following a report that the SEC is probing the company’s accounting methods on its 787 Dreamliner and the 747 aircraft; Boeing has refused to comment.
- The day's decline roughly matches the 8.9% drop late last month when the company issued disappointing financial guidance. which had been the biggest single-day drop since 2001.
- The news also has sparked selling in other aerospace stocks at a time when investors in the sector have become increasingly nervous that booming aircraft orders could founder as Boeing and Airbus (OTCPK:EADSF, OTCPK:EADSY) boost production to record levels: LMT -3.2%, NOC -3.2%, RTN -3.4%.
- S&P Global Market Intelligence’s Jim Corridore retains his Buy rating, saying that while the news is "a near-term negative that may overhang the stock and could lead to a large charge or fine, we remain positive on the large backlog of business Boeing has accumulated, and remain positive on overall aerospace demand."
- Buckingham Research reiterates an Underperform rating with a $108 price target in a report that preceded the SEC story, citing below consensus free cash flow and pricing pressure as key catalysts for a downward move.
- Earlier: WSJ: Boeing to cut jobs as Airbus competition heats up (Feb. 10)
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%).
Oct. 28, 2015, 9:12 AM
Oct. 28, 2015, 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
Oct. 27, 2015, 5:21 PM
- Northrop Grumman (NYSE:NOC) is up 5.8% after hours as it's emerged the winner of the giant contract for the Pentagon's Long Range Strike Bomber program, Air Force Secretary Deborah Lee James confirmed.
- The $55B program will build 100 planes to enter service in the 2020s and succeed an aging bomber fleet.
- Northrop beat a team of Boeing (NYSE:BA) and Lockheed Martin (NYSE:LMT) to the huge award. The company -- builder of the veteran B-2 bomber -- was so eager that it ran a Super Bowl ad in some markets talking about its legacy.
- Live stream
Sep. 22, 2015, 11:51 AM
- Northrop Grumman (NOC -2%) has signed a long-term deal with Norway's Kitron to source subassembly electronic modules for the F-35 Lightning II aircraft, extending its supply chain for the fighter in Europe.
- The deal goes through June 2036 with rights for extensions. The first F-35A Lightning II for Norway is set for a Sept. 22 delivery.
- Norway is one of eight partner nations to the U.S. that invested in development of the F-35.
Apr. 29, 2015, 8:06 AM
- Net income of $484M, or $2.41 per diluted share vs. $579M, or $2.63 per diluted share in the first quarter of 2014.
- The company repurchased 5.3M shares of its common stock for $859M during the quarter. As of March 31, 2015, the company had repurchased 47.5M shares toward its previously announced goal of retiring 60M shares by the end of 2015.
- Total backlog as of March 31 was $38.4B compared with $38.2B a year ago.
- The company also raised its earnings forecast for the full year to a range of $9.40-$9.60 from an earlier range of $9.20-$9.50.
- NOC +2.1% premarket
- Q1 results
Mar. 12, 2015, 11:33 AM
- Sikorsky Aircraft would be a sought-after property if United Technologies (UTX +2%) follows through with a sale, probably as a tax-free spinoff that could be valued on a stand-alone basis of $7B-$8.5B, or $8-$10/share, Sterne Agee's Peter Arment calculates.
- Citi's Jason Gursky says a deal should be met favorably, Sikorsky is not well aligned with UTX’s vision of being exposed to end markets that will likely benefit from the world’s growing middle class.
- Gursky is looking to Northrop Grumman's (NYSE:NOC) 2011 spinoff of Huntington Ingalls as an example, which led to the levering up of the spinco and the repurchase of the parent company stock.
- Management has put no timeline on the potential alternative outcomes, but Arment expects a conclusion by mid-summer 2015.
Sep. 26, 2014, 3:27 PM
- Northrop Grumman (NOC +2.4%) is upgraded to Buy from Hold with a $145 price target at Deutsche Bank, which sees the down cycle in defense spending fading and the possibility of budget increases into FY 2017.
- The firm feels defense spending is bottoming as global tensions rise along with a shift in public sentiment on threats and priorities, and a turn in defense spending would benefit NOC more than its peers since 86% of the company's sales are tied to the U.S. government.
- DB also likes that NOC returns 100% of free cash flow to its shareholders; NOC increased its dividend by 15% in May, has bought back 17M million shares YTD, has retired 30M shares and plans to retire 30M more shares by year-end 2015.
Aug. 1, 2014, 5:40 PM
Feb. 24, 2014, 2:58 PM
- The Pentagon announces plans to shrink the U.S. Army to pre-WW II levels - to fewer than 450K from the current 520K - in order to meet 2015 spending caps.
- Also planned for elimination is the Air Force's fleet of A-10 Warthog close air support planes - a change some influential lawmakers are expected to oppose - to ensure continued funding of Lockheed Martin's (LMT +1.7%) new long-range F-35 bomber and a new aerial refueling tanker.
- Nevertheless, top defense stocks are solidly higher, presumably because the Defense Department envisions warfare being waged using enhanced technologies: BA +1.4%, GD +1.5%, NOC +1.9%, RTN +2.2%, HII +0.9%.
Jan. 17, 2014, 5:37 PM
Jul. 24, 2013, 8:27 AM
More on Northrop Grumman's (NOC) Q2: Revenue comes in at $6.294B, beating estimates by $314M. Operating margin rises 50 basis points Y/Y, operating income is up 4%. Revenue growth by segment: Aerospace, 9%; Electronic Systems, 2%; Information Systems, -9%; Technical Services -8%. The aerospace unit benefits from "higher volume for manned [and] unmmaned military aircraft." The "current U.S. government budget environment" contributes to a decrease in total backlog of $3.1B since December. FY13 guidance: $7.60-7.80/ share (well above consensus) on $24.3B in sales. Shares +3.1% premarket. (PR)| Jul. 24, 2013, 8:27 AM | 1 Comment
May 30, 2013, 7:53 AM
Goldman is out with upgrades for the defense contractors: Northrop Grumman (NOC) is taken to Buy from Neutral (PT, $95) as it transitions to "a consistent performer with above average margins" and is now "arguably the most shareholder-friendly defense prime" (I, II); Lockheed Martin (LMT) is "in the sweet spot of Pentagon priorities" and lands on the coveted Conviction Buy list with a PT of $127; Raytheon (RTN) gets a Neutral from Sell bump (PT, $70) as Goldman "underestimated the multiple the market would pay for cash generation and dividend yield." LMT +2% premarket, NOC +1.34% premarket.| May 30, 2013, 7:53 AM | 3 Comments
May 17, 2013, 12:43 PM
JPMorgan lifts its price target ($70 from $68) on Northrop Grumman (NOC +3.6%) to reflect Thursday's announcement that the company plans to reduce the number of outstanding shares by 25% by 2015. More interesting is the color in the note regarding NOC's position relative to peers: the company "intends to return essentially all cash to shareholders. Besides LMT's nearly 50% payout ratio (which we believe is likely to rise still higher in September), this is the clearest multi-year strategic statement we have seen among large defense companies, and we think the market will reward this," notes analyst Joseph Nadol III.| May 17, 2013, 12:43 PM | 1 Comment