Defense contractor, Northrop Grumman Corporation (NOC) was awarded a $29.7 million firm fixed price contract modification to exercise the option to extend services for six months of fiscal year 2013 in support of the C-20 Contractor Logistics Support contract. This effort includes depot maintenance; contractor operated and maintained base supply, and flight line maintenance and field team support. Work is to be completed by March 30, 2013. The contracting activity is Tinker Air Force Base, Oklahoma.
Falls Church, Virginia-based Northrop Grumman Corporation is one of the largest defense contractors in the U.S. The company supplies a broad array of products and services to the U.S. Department of Defense including electronic systems, information technology, aircraft, space technology, and systems integration services. The positive case for Northrop Grumman stems from revenue growth across the board and a broad diversification of programs.
Northrop Grumman offers a strong program portfolio positioned to take advantage of focus areas in the defense space, an improving balance sheet and an ongoing share repurchase program. Also, its product line in high priority categories, such as defense electronics, unmanned aircraft and missile defense, gives Northrop Grumman an edge over competition.
Northrop Grumman’s backlog is expected to see further upside in the near future through unmanned aerial vehicle (UAV) platforms, including Broad Area Maritime Surveillance (BAMS), Fire Scout and Navy Unmanned Combat Air System (UCA).
Going forward, Northrop Grumman offers a strong program portfolio positioned to take advantage of focus areas in the defense space, an improving balance sheet and an ongoing share repurchase program.
In July 2012, Northrop reported second-quarter 2012 results. Adjusted earnings per share of $1.79 easily surpassed the Zacks Consensus Estimate of $1.61 and the year-ago figure of $1.59. Sales for the reported quarter decreased 4.4% to $6.27 billion from $6.56 billion in the year-ago quarter. However, revenues beat the Zacks Consensus Estimate by $89 million.
The company presently retains a short-term Zacks #2 Rank (Buy). We have a long-term Outperform recommendation on the stock. Some of its main competitors are General Dynamics Corporation (GD) and Lockheed Martin Corporation (LMT).
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NORTHROP GRUMMN (NOC): Free Stock Analysis Report
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