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Northrop (NOC) Arm Wins $57.4M Deal to Support MQ-4C Triton
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Northrop Grumman Corporation’s (NOC - Free Report) business unit, Northrop Grumman Systems Corp., recently clinched a modification contract to support the MQ-4C Triton air vehicles, mission control and operator training systems. Valued at $57.4 million, the contract is projected to be complete by March 2024.
Details of the Deal
The modification contract was awarded by the Naval Air Systems Command, Patuxent River, MD. The deal involves providing continued sustainment, engineering, logistics, and test support for MQ-4C Triton air vehicles.
The contract also entails offering continued field service representative’s technical support to ensure that the MQ-4C Triton Unmanned Aerial System (UAS) aircraft are capable of intelligence, surveillance and reconnaissance missions. The deal will serve both the U.S. Navy and the government of Australia.
The work will be carried out at multiple locations across the United States.
Importance of MQ-4C Triton
Northrop Grumman’s MQ-4C Triton UAS provides real-time intelligence, surveillance and reconnaissance (ISR) over vast ocean and coastal regions.
Triton is equipped with a unique and robust mission sensor suite that provides 360-degree coverage on all sensors, providing unprecedented maritime domain awareness for the U.S. Navy. Built for the U.S. Navy, Triton supports a wide range of missions, including maritime ISR patrol, signals intelligence, search and rescue and communications relay.
Such features of the MQ-4C Triton make it attractive for the military, thus resulting in NOC winning multiple orders for the same, like the latest one. This is likely to boost the revenue-generation prospects of the company from the UAS business arena.
Growth Prospects
Countries globally have been reinforcing their military resources due to intense geopolitical tensions and amplified terrorist threats. To this end, a military UAS that forms an integral part of any defense system due to its surveillance and reconnaissance abilities is likely to witness pent-up demand.
Per a report from Markets and Markets firm, the military unmanned aerial vehicle (UAV) market is projected to witness a CAGR of 7.9% over the 2022-2027 period. Such growth prospects may benefit Northrop Grumman as it offers a wide range of aerial vehicle that already enjoys an established position in the military UAV market.
The abounding growth prospects of the UAV market should also benefit other defense majors that have forayed into this market. These include Lockheed Martin (LMT - Free Report) , Raytheon Technologies (RTX - Free Report) and Kratos (KTOS - Free Report) .
Lockheed’s Skunk Works is involved in the designing of revolutionary ISR and UAS systems and associated enabling technologies. Some of its product ranges include Stalker, X-44, U-2S Dragon Lady, etc.
Lockheed Martin’s long-term earnings growth rate is pegged at 6.7%. Shares of LMT have returned 13.7% value to investors in the past year.
Raytheon’s Coyote drone is equipped with an advanced seeker and warhead that can successfully identify and eliminate threat UAVs.
Raytheon boasts a long-term earnings growth rate of 8.3%. RTX shares have increased 2.7% in the past year.
Kratos is vertically integrated, possessing the technical expertise to design, build, operate, and control some of the world’s most advanced unmanned platforms. Its UAS product range includes XQ-58A Valkyrie, UTAP-22 Mako, X-61A Gremlin, etc
The Zacks Consensus Estimate for Kratos’ 2023 earnings suggest a growth rate of 3.2% from the prior year’s reported figure. KTOS stock has appreciated 8.3% in the past six months.
Price Movement
In the past year, shares of Northrop Grumman have increased 6.9% against the industry’s decline of 11.8%.
Image: Bigstock
Northrop (NOC) Arm Wins $57.4M Deal to Support MQ-4C Triton
Northrop Grumman Corporation’s (NOC - Free Report) business unit, Northrop Grumman Systems Corp., recently clinched a modification contract to support the MQ-4C Triton air vehicles, mission control and operator training systems. Valued at $57.4 million, the contract is projected to be complete by March 2024.
Details of the Deal
The modification contract was awarded by the Naval Air Systems Command, Patuxent River, MD. The deal involves providing continued sustainment, engineering, logistics, and test support for MQ-4C Triton air vehicles.
The contract also entails offering continued field service representative’s technical support to ensure that the MQ-4C Triton Unmanned Aerial System (UAS) aircraft are capable of intelligence, surveillance and reconnaissance missions. The deal will serve both the U.S. Navy and the government of Australia.
The work will be carried out at multiple locations across the United States.
Importance of MQ-4C Triton
Northrop Grumman’s MQ-4C Triton UAS provides real-time intelligence, surveillance and reconnaissance (ISR) over vast ocean and coastal regions.
Triton is equipped with a unique and robust mission sensor suite that provides 360-degree coverage on all sensors, providing unprecedented maritime domain awareness for the U.S. Navy. Built for the U.S. Navy, Triton supports a wide range of missions, including maritime ISR patrol, signals intelligence, search and rescue and communications relay.
Such features of the MQ-4C Triton make it attractive for the military, thus resulting in NOC winning multiple orders for the same, like the latest one. This is likely to boost the revenue-generation prospects of the company from the UAS business arena.
Growth Prospects
Countries globally have been reinforcing their military resources due to intense geopolitical tensions and amplified terrorist threats. To this end, a military UAS that forms an integral part of any defense system due to its surveillance and reconnaissance abilities is likely to witness pent-up demand.
Per a report from Markets and Markets firm, the military unmanned aerial vehicle (UAV) market is projected to witness a CAGR of 7.9% over the 2022-2027 period. Such growth prospects may benefit Northrop Grumman as it offers a wide range of aerial vehicle that already enjoys an established position in the military UAV market.
The abounding growth prospects of the UAV market should also benefit other defense majors that have forayed into this market. These include Lockheed Martin (LMT - Free Report) , Raytheon Technologies (RTX - Free Report) and Kratos (KTOS - Free Report) .
Lockheed’s Skunk Works is involved in the designing of revolutionary ISR and UAS systems and associated enabling technologies. Some of its product ranges include Stalker, X-44, U-2S Dragon Lady, etc.
Lockheed Martin’s long-term earnings growth rate is pegged at 6.7%. Shares of LMT have returned 13.7% value to investors in the past year.
Raytheon’s Coyote drone is equipped with an advanced seeker and warhead that can successfully identify and eliminate threat UAVs.
Raytheon boasts a long-term earnings growth rate of 8.3%. RTX shares have increased 2.7% in the past year.
Kratos is vertically integrated, possessing the technical expertise to design, build, operate, and control some of the world’s most advanced unmanned platforms. Its UAS product range includes XQ-58A Valkyrie, UTAP-22 Mako, X-61A Gremlin, etc
The Zacks Consensus Estimate for Kratos’ 2023 earnings suggest a growth rate of 3.2% from the prior year’s reported figure. KTOS stock has appreciated 8.3% in the past six months.
Price Movement
In the past year, shares of Northrop Grumman have increased 6.9% against the industry’s decline of 11.8%.
Image Source: Zacks Investment Research
Zacks Rank
Northrop Grumman currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.