Northrop Grumman Corporation’s (NOC - Free Report) business unit, Northrop Grumman Systems Corp., recently secured an indefinite-delivery/indefinite-quantity, firm fixed-price, cost-reimbursable contract for sustainment, modernization, production and development of the LITENING advanced targeting pod.
Valued at $1.3 billion, the contract was awarded by Air Force Life Cycle Management Center, Robins Air Force Base, GA. Work related to the deal is scheduled to be over by Dec 31, 2023.
A Brief Note on LITENING
Northrop Grumman's widely fielded AN/AAQ-28(V) LITENING system is a combat proven, self-contained, multi-sensor targeting and surveillance system. LITENING enables aircrews to detect, acquire, auto-track and identify targets at long ranges for weapon delivery or nontraditional intelligence, surveillance and reconnaissance missions.
LITENING's 1K FLIR, 1K charged-coupled device (CCD), laser imaging sensors, advanced image processing and digital video output provide superior imagery, allowing aircrews to identify and engage targets under a wide range of battlefield conditions.
Northrop Grumman’s Growth Prospects
Northrop Grumman has a strong presence along with other key players in the Aerospace – Defense industry such as Lockheed Martin Corp. (LMT - Free Report) , The Boeing Company (BA - Free Report) and Huntington Ingalls Industries, Inc. (HII - Free Report) .
The company’s product line is well-positioned in high-priority categories such as defense electronics, unmanned aircraft and missile defense. Moreover, the fiscal 2019 defense budget includes $686.1 billion as funding for the Pentagon reflects 5% real growth over President Donald Trump’s initial budget for fiscal 2018. Such increased spending levels for defense are expected to lend a solid boost to Northrop Grumman.
In the missile space, Northrop Grumman has been consistently witnessing sturdy demand for its products on a global scale with programs like F-35, Triton and SABR radar, Global Hawk and a sound set of new programs. To this end, in June, the Australian government announced its commitment to purchase Northrop Grumman’s Triton drones worth approximately $5.1 billion. Such contract wins should enable the company to improve its top line, going forward.
Northrop Grumman’s stock has lost 26.1% in the past 12 months, wider than the industry’s decline of 14.7%.
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.
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