We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Northrop Grumman Wins $17.1M Support Contract for MQ-8
Read MoreHide Full Article
Northrop Grumman Corporation (NOC - Free Report) has secured a contract to provide system software and engineering services for the MQ-8 Fire Scout unmanned air system from the Naval Air Systems Command, MD. The contract is worth $17.1 million.
Details of the Contract
The contract includes software design and system integration, qualification testing, cyber security activities and engineering services. Work will be executed in San Diego, CA, with an anticipated completion date in Dec 2017.
A Brief Note on MQ-8
The MQ-8 Fire Scout is a combat proven, unmanned, autonomous helicopter developed by Northrop Grumman. Fire Scout is designed to provide reconnaissance, situational awareness, aerial fire support and precision targeting support for ground, air and sea forces. It has the ability operate from any air-capable ship or land base for offering Intelligence, Surveillance and Reconnaissance (“ISR”) requirements.
Price Movement
Shares of Northrop Grumman have gained 22.6%, outperforming the Zacks categorized Aerospace-Defense industry’s gain of 10.9% over the past 12 months.
This could be because Northrop restructured its business to focus on space and airborne ISR, which helped it reap significant benefits. Moreover, the company continues to witness a steady flow of contracts from the Pentagon and other international customers. On an average, the company has delivered a positive earnings surprise of 8.29% in the trailing four quarters.
Aerospace & Defense Industry Outlook
The outlook for the industry has improved remarkably following the election on hopes that the Trump administration will stick to its campaign promise of ramping up military spending.
Increasing terrorist attacks across the globe have spurred nations to make heavy investments in strengthening their defense capabilities. The aerospace and defense industry is a direct beneficiary of a volatile and uncertain geopolitical global backdrop, characterized by terrorist threats, civil wars and border disputes. Moreover, other factors like rising demand for more fuel-efficient aircraft, the growing international market and increasing application of unmanned aircraft in warfare today are driving up sales in this sector.
The U.S., home to the world’s biggest weapons manufacturers, is potentially a big beneficiary of this environment with the big players like Northrop Grumman, Lockheed Martin Corporation (LMT - Free Report) , General Dynamics Corporation (GD - Free Report) and The Boeing Company (BA - Free Report) well positioned to gain from the global security scenario at present.
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Northrop Grumman Wins $17.1M Support Contract for MQ-8
Northrop Grumman Corporation (NOC - Free Report) has secured a contract to provide system software and engineering services for the MQ-8 Fire Scout unmanned air system from the Naval Air Systems Command, MD. The contract is worth $17.1 million.
Details of the Contract
The contract includes software design and system integration, qualification testing, cyber security activities and engineering services. Work will be executed in San Diego, CA, with an anticipated completion date in Dec 2017.
A Brief Note on MQ-8
The MQ-8 Fire Scout is a combat proven, unmanned, autonomous helicopter developed by Northrop Grumman. Fire Scout is designed to provide reconnaissance, situational awareness, aerial fire support and precision targeting support for ground, air and sea forces. It has the ability operate from any air-capable ship or land base for offering Intelligence, Surveillance and Reconnaissance (“ISR”) requirements.
Price Movement
Shares of Northrop Grumman have gained 22.6%, outperforming the Zacks categorized Aerospace-Defense industry’s gain of 10.9% over the past 12 months.
This could be because Northrop restructured its business to focus on space and airborne ISR, which helped it reap significant benefits. Moreover, the company continues to witness a steady flow of contracts from the Pentagon and other international customers. On an average, the company has delivered a positive earnings surprise of 8.29% in the trailing four quarters.
Aerospace & Defense Industry Outlook
The outlook for the industry has improved remarkably following the election on hopes that the Trump administration will stick to its campaign promise of ramping up military spending.
Increasing terrorist attacks across the globe have spurred nations to make heavy investments in strengthening their defense capabilities. The aerospace and defense industry is a direct beneficiary of a volatile and uncertain geopolitical global backdrop, characterized by terrorist threats, civil wars and border disputes. Moreover, other factors like rising demand for more fuel-efficient aircraft, the growing international market and increasing application of unmanned aircraft in warfare today are driving up sales in this sector.
The U.S., home to the world’s biggest weapons manufacturers, is potentially a big beneficiary of this environment with the big players like Northrop Grumman, Lockheed Martin Corporation (LMT - Free Report) , General Dynamics Corporation (GD - Free Report) and The Boeing Company (BA - Free Report) well positioned to gain from the global security scenario at present.
Zacks Rank & Key Picks
Northrop Grummancurrently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>