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Northrop (NOC) Wins Contract to Aid E-2D Hawkeye Aircraft
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Northrop Grumman Corp. (NOC - Free Report) clinched a contract involving E-2D Hawkeye aircraft. The award has been offered by the Naval Supply Systems Command (NAVSUP) Weapon Systems Support (WSS), Philadelphia, PA.
Details of the Deal
Valued at $15.6 million, the contract is expected to be completed by July 2026. Per the terms of the deal, Northrop will conduct repair and overhaul of 270 power amplifier modules to support the E-2D aircraft. These jets are used in the NAVSUP WSS Integrated Weapon Support Team’s program.
Majority of the work related to this contract will be carried out in Woodland Hills, CA.
Importance of E-2D Hawkeye Jet
Northrop’s E-2D Hawkeye aircraft boasts battle management, theater air, missile defense and multiple sensor fusion capabilities in an airborne system. These provide the warfighter with expanded battlespace awareness, especially in the area of information operations.
Through its effective radar sensor and robust network-enabled capability, the Advanced Hawkeye aircraft provides critical, actionable data to joint forces and first responders.
Such features of the aircraft make it attractive for the military, resulting in NOC winning multiple orders for the same, like the latest one. The new orders are likely to boost Northrop’s revenue generation prospects in the military aircraft 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 aircraft that forms an integral part of any air defense system is likely to witness pent-up demand.
Per a report from Mordor Intelligence, the military aircraft market is projected to witness a CAGR of 4% over the 2022-2031 period. Such growth prospects may benefit Northrop as its military aviation system offers a wide range of manned and unmanned aircraft that already enjoys an established position in the military aircraft market.
The abounding growth prospects of the military aircraft market should also benefit other defense majors that manufacture combat jets, including Lockheed Martin (LMT - Free Report) , Boeing (BA - Free Report) and Textron (TXT - Free Report) .
Lockheed’s Aeronautics segment is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft, including combat and air mobility aircraft, unmanned air vehicles and related technologies. Its major programs include the F-35 Lightning II Joint Strike Fighter jet, the C-130 Hercules airlifter, the F-16 Fighting Falcon jet and the F-22 Raptor jet.
Lockheed Martin’s long-term earnings growth rate is 6.2%. Shares of LMT have returned 7.3% value to its investors in the past year.
Boeing’s Defense, Space & Security segment’s primary products include fixed-wing military aircraft, F/A-18E/F Super Hornet, F-15 programs, P-8 programs, KC-46A Tanker and T-7A Red Hawk. The segment also produces rotorcraft and rotary-wing programs, such as CH-47 Chinook, AH-64 Apache and V-22 Osprey.
Boeing’s long-term earnings growth rate is 4%. The Zacks Consensus Estimate for BA’s 2023 sales indicates growth of 17.9% from the 2022 reported figure.
Textron’s business unit, Textron Aviation Defense, designs, builds and supports versatile and globally known military aircraft preferred for training and attack missions. Some of Textron’s renowned products include the Beechcraft T-6C trainer and the AT-6 Wolverine.
Textron boasts a long-term earnings growth rate of 11.2%. The Zacks Consensus Estimate for TXT’s 2023 sales indicates growth of 7.2% from the previous year’s reported number.
Price Movement
In the past six months, shares of Northrop have lost 18.8% compared with the industry’s decline of 8.2%.
Image: Bigstock
Northrop (NOC) Wins Contract to Aid E-2D Hawkeye Aircraft
Northrop Grumman Corp. (NOC - Free Report) clinched a contract involving E-2D Hawkeye aircraft. The award has been offered by the Naval Supply Systems Command (NAVSUP) Weapon Systems Support (WSS), Philadelphia, PA.
Details of the Deal
Valued at $15.6 million, the contract is expected to be completed by July 2026. Per the terms of the deal, Northrop will conduct repair and overhaul of 270 power amplifier modules to support the E-2D aircraft. These jets are used in the NAVSUP WSS Integrated Weapon Support Team’s program.
Majority of the work related to this contract will be carried out in Woodland Hills, CA.
Importance of E-2D Hawkeye Jet
Northrop’s E-2D Hawkeye aircraft boasts battle management, theater air, missile defense and multiple sensor fusion capabilities in an airborne system. These provide the warfighter with expanded battlespace awareness, especially in the area of information operations.
Through its effective radar sensor and robust network-enabled capability, the Advanced Hawkeye aircraft provides critical, actionable data to joint forces and first responders.
Such features of the aircraft make it attractive for the military, resulting in NOC winning multiple orders for the same, like the latest one. The new orders are likely to boost Northrop’s revenue generation prospects in the military aircraft 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 aircraft that forms an integral part of any air defense system is likely to witness pent-up demand.
Per a report from Mordor Intelligence, the military aircraft market is projected to witness a CAGR of 4% over the 2022-2031 period. Such growth prospects may benefit Northrop as its military aviation system offers a wide range of manned and unmanned aircraft that already enjoys an established position in the military aircraft market.
The abounding growth prospects of the military aircraft market should also benefit other defense majors that manufacture combat jets, including Lockheed Martin (LMT - Free Report) , Boeing (BA - Free Report) and Textron (TXT - Free Report) .
Lockheed’s Aeronautics segment is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft, including combat and air mobility aircraft, unmanned air vehicles and related technologies. Its major programs include the F-35 Lightning II Joint Strike Fighter jet, the C-130 Hercules airlifter, the F-16 Fighting Falcon jet and the F-22 Raptor jet.
Lockheed Martin’s long-term earnings growth rate is 6.2%. Shares of LMT have returned 7.3% value to its investors in the past year.
Boeing’s Defense, Space & Security segment’s primary products include fixed-wing military aircraft, F/A-18E/F Super Hornet, F-15 programs, P-8 programs, KC-46A Tanker and T-7A Red Hawk. The segment also produces rotorcraft and rotary-wing programs, such as CH-47 Chinook, AH-64 Apache and V-22 Osprey.
Boeing’s long-term earnings growth rate is 4%. The Zacks Consensus Estimate for BA’s 2023 sales indicates growth of 17.9% from the 2022 reported figure.
Textron’s business unit, Textron Aviation Defense, designs, builds and supports versatile and globally known military aircraft preferred for training and attack missions. Some of Textron’s renowned products include the Beechcraft T-6C trainer and the AT-6 Wolverine.
Textron boasts a long-term earnings growth rate of 11.2%. The Zacks Consensus Estimate for TXT’s 2023 sales indicates growth of 7.2% from the previous year’s reported number.
Price Movement
In the past six months, shares of Northrop have lost 18.8% compared with the industry’s decline of 8.2%.
Image Source: Zacks Investment Research
Zacks Rank
Northrop currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.