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Northrop Grumman Corporation (NOC - Free Report) has secured a contract for 10 engine overhauls in support of the KC-10 program from the Air Force Life Cycle Management Center, OK. The contract is worth $45 million.
Work will be executed in Vancouver, Canada and is expected to be completed by Dec 31, 2018.
A Brief Note on KC-10
The KC-10 Extender is an aerial refueling tanker aircraft operated by the U.S. Air Force. It incorporates military-specific equipment for its primary roles of transport and aerial refueling. The KC-10 plays a key role in the mobilization of U.S. military assets, taking part in overseas operations.
Northrop Grumman provides 24/7 global logistics support for the KC-10 including comprehensive supply chain management , engine management, overhaul and repair, aircraft depot maintenance and field teams, field service representatives and ground support equipment support and engineering support services.
Price Movement
Shares of Northrop Grumman have gained 20.9%, outperforming the Zacks categorized Aerospace-Defense industry’s gain of 11.6% over the past 12 months.
This could be because Northrop Grumman restructured its business to focus on space and airborne Intelligence, Surveillance and Reconnaissance, which helped the company to 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 victory of Donald Trump in the U.S. Presidential election on hopes that the new 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. In a way, 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 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.
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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>>
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Northrop (NOC) Wins Engine Overhauls Contract Worth $45M
Northrop Grumman Corporation (NOC - Free Report) has secured a contract for 10 engine overhauls in support of the KC-10 program from the Air Force Life Cycle Management Center, OK. The contract is worth $45 million.
Work will be executed in Vancouver, Canada and is expected to be completed by Dec 31, 2018.
A Brief Note on KC-10
The KC-10 Extender is an aerial refueling tanker aircraft operated by the U.S. Air Force. It incorporates military-specific equipment for its primary roles of transport and aerial refueling. The KC-10 plays a key role in the mobilization of U.S. military assets, taking part in overseas operations.
Northrop Grumman provides 24/7 global logistics support for the KC-10 including comprehensive supply chain management , engine management, overhaul and repair, aircraft depot maintenance and field teams, field service representatives and ground support equipment support and engineering support services.
Price Movement
Shares of Northrop Grumman have gained 20.9%, outperforming the Zacks categorized Aerospace-Defense industry’s gain of 11.6% over the past 12 months.
This could be because Northrop Grumman restructured its business to focus on space and airborne Intelligence, Surveillance and Reconnaissance, which helped the company to 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 victory of Donald Trump in the U.S. Presidential election on hopes that the new 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. In a way, 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 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
Northrop Grumman carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank 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>>