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Northrop Grumman Corporation (NOC)

  • Wed, Apr. 29, 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
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  • Thu, Mar. 12, 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.
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  • 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.
    | 1 Comment
  • 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
    • Top gainers, as of 5:15 p.m.: YRCW +8.7%. RSH +2.5%. AG +2.0%. MDVN +1.9%. MUX +1.6%.
    • Top losers, as of 5:15 p.m.: CCL -4.2%. SBGL -3.5%. Z -1.8%. SRPT -1.6%. NOC -1.1%.
  • 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)
    | 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 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.
    | 1 Comment
  • Sep. 13, 2012, 11:49 AM
    Northrop Grumman (NOC -2.8%) slips on a downgrade to Sell on valuation at UBS this morning, citing concerns over it's outsized exposure to a declining U.S. defense budget. As our military commitments draw down globally, the looming fiscal cliff debate puts it squarely against cuts to hot point programs like Medicare coverage, Social Security benefits and safety net programs for the poor.
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  • Feb. 2, 2012, 12:48 PM
    Northrop Grumman (NOC -0.8%) trades lower after BofA Merrill Lynch cut the shares to Underperform, citing the defense contractor's disappointing FY12 guidance yesterday.
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  • Nov. 8, 2011, 11:31 AM
    CPI Aerostructures (CVU +16.2%) jumps after its Q3 beats estimates across the board. Revenues increased 28% Y/Y, primarily due to contract work done for Boeing (BA -0.5%) on the A-10 attack jet and on the E-2D surveillance airplane for Northrop Grumman (NOC -1%). The company raises its FY12 revenue guidance, now expecting revenues of $95M to $98M, above the Street estimate of $95M.
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  • Oct. 21, 2011, 2:23 PM
    Defense contractors are outperforming in the wake of Honeywell's (HON +4.6%) strong Q3 report, which featured better-than-expected numbers from its Aerospace division. BA +2.7%. GD +2.8%. RTN +2.4%. NOC +2.6%. ATK +3.2%. (HON transcript)
    | 1 Comment
  • Aug. 1, 2011, 4:33 PM
    Aside from Medicare-dependent firms (I, II), defense contractors (PAA -1.2%) also have much to fear from "devastating" cuts via a debt deal. The Pentagon would take fully 50% of cuts imposed by any triggered second round of $1.2T in cuts, Lazard analyst Michael Lewis warns. LMT -1.7%, RTN -0.9%, NOC -1.5%, GD -0.9%, SAI -2.7%, LLL -3.2%.
  • Jul. 7, 2011, 2:39 PM
    Northrop Grumman (NOC -2.4%) dips after Bernstein cuts shares to Market Perform on valuation, seeing little further upside with coming federal budget cuts and a relatively flat revenue outlook.
    | 1 Comment
  • Apr. 13, 2011, 3:37 PM
    All the talk about budget cuts, including Obama’s plan, sparks a Goldman warning on the defense sector: "Declines in base investment in 2011 outcome represent an outcome worse than we expected when we first downgraded the Defense sector," and 2012 cuts will be "similar to if not more than" 2011. LMT -2.5%, NOC -2%, LLL -1.7%, RTN -2.8%, GD -1.2%, BA -1.3%.
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Company Description
Northrop Grumman Corporation is a security company providing systems, products and solutions in unmanned systems, cybersecurity; command, control, communications and computers (C4) intelligence, surveillance, and reconnaissance.
Country: United States