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Orbital ATK Gets $90M Deal for B-2 Spirit Stealth Bomber
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Orbital ATK announced that it has been awarded an initial $90 million contract from Northrop Grumman (NOC - Free Report) to supply parts for the B-2 Spirit stealth bomber.
Contract Detail
Under the terms of the contract that extends for five years, Orbital ATK will produce composite components for the B-2 Spirit stealth bomber.
There will be an open option for follow-on orders. The production will start later this year, in the company's Aerospace Structures Division facility in Dayton, OH. Orbital ATK is expected to produce 17 Hot Trailing Edge (HTE) composite parts.
With the help of B-2 Spirit stealth bomber, the U.S. Air Force carries out long-range strike missions. It is considered to be one of the most survivable defense aircraft in the world.
Strong Order Book
Orbital ATK’s partnership with Northrop Grumman will benefit the company’s Aerospace Structures Division. Orbital ATK, with its proprietary production processes, has the capability to reduce manufacturing time without compromising on quality.
The global leader in aerospace and defense technologies has received multiple new contracts in recent times. Earlier this month the company signed a new supply order with the U.S. Army worth $76 million. (Read more: Orbital ATK Wins $76 Million Supply Order from US Army)
Orbital ATK exited 2016 with a backlog of $14.4 billion, approximately. This amount reflects a 10% rise year over year and is expected to contribute about 90% of the total targeted revenue for 2017.
Industry Scenario
The global unrest associated with the rising terror activities has forced most of the nations to give additional attention to their defense infrastructure. President Trump, has proposed a 10% hike in defense spending of fiscal 2018.
The major aerospace and defense technology companies continue to receive orders from different verticals of the U.S. Defense.
Lockheed Martin Corp.’s (LMT - Free Report) Sikorsky Aircraft Corp. has won a modification contract from the U.S. Navy to provide the long-lead items in support of low-rate initial production of four Lot II CH-53K aircraft. (Read more: Lockheed Martin Wins $55M Deal for CH-53K Aircraft)
In the last six months, shares of Orbital ATK increased 17.8%, outperforming the Zacks categorized Aerospace – Defense Equipment industry's gain of 6.9%.
Thanks to its diverse product offering, Orbital ATK continues to win a steady stream of contracts from its wide customer base, which has further boosted performance.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
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Orbital ATK Gets $90M Deal for B-2 Spirit Stealth Bomber
Orbital ATK announced that it has been awarded an initial $90 million contract from Northrop Grumman (NOC - Free Report) to supply parts for the B-2 Spirit stealth bomber.
Contract Detail
Under the terms of the contract that extends for five years, Orbital ATK will produce composite components for the B-2 Spirit stealth bomber.
There will be an open option for follow-on orders. The production will start later this year, in the company's Aerospace Structures Division facility in Dayton, OH. Orbital ATK is expected to produce 17 Hot Trailing Edge (HTE) composite parts.
With the help of B-2 Spirit stealth bomber, the U.S. Air Force carries out long-range strike missions. It is considered to be one of the most survivable defense aircraft in the world.
Strong Order Book
Orbital ATK’s partnership with Northrop Grumman will benefit the company’s Aerospace Structures Division. Orbital ATK, with its proprietary production processes, has the capability to reduce manufacturing time without compromising on quality.
The global leader in aerospace and defense technologies has received multiple new contracts in recent times. Earlier this month the company signed a new supply order with the U.S. Army worth $76 million. (Read more: Orbital ATK Wins $76 Million Supply Order from US Army)
Orbital ATK exited 2016 with a backlog of $14.4 billion, approximately. This amount reflects a 10% rise year over year and is expected to contribute about 90% of the total targeted revenue for 2017.
Industry Scenario
The global unrest associated with the rising terror activities has forced most of the nations to give additional attention to their defense infrastructure. President Trump, has proposed a 10% hike in defense spending of fiscal 2018.
The major aerospace and defense technology companies continue to receive orders from different verticals of the U.S. Defense.
Lockheed Martin Corp.’s (LMT - Free Report) Sikorsky Aircraft Corp. has won a modification contract from the U.S. Navy to provide the long-lead items in support of low-rate initial production of four Lot II CH-53K aircraft. (Read more: Lockheed Martin Wins $55M Deal for CH-53K Aircraft)
General Dynamics Corp.’s (GD - Free Report) business division, Ordnance and Tactical Systems, secured a modification contract worth $40.8 million. (Read more: General Dynamics' Unit Wins $41M Contract from U.S. Navy)
Price Movement
In the last six months, shares of Orbital ATK increased 17.8%, outperforming the Zacks categorized Aerospace – Defense Equipment industry's gain of 6.9%.
Thanks to its diverse product offering, Orbital ATK continues to win a steady stream of contracts from its wide customer base, which has further boosted performance.
Zacks Rank
Orbital ATK carries a Zacks rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>