Shares of aerospace and defense operator
Northrop Grumman Corp.
) moved up thanks to steady order wins from the defense
establishments. The shares of Northrop ended at $113.95 on
Wednesday gaining 2.3% in three days.
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On Sep 27, the Department of Defense announced 20 separate
contracts adding up to $334.2 million. Northrop received a
cost-plus-fixed-fee contract worth $13.8 million. Per the
contract, the company will provide logistic support for the
MQ-8B/C Fire Scout robotic helicopter through Nov 2014.
Other aerospace and defense operators to win contracts on the day
The Boeing company
) with $15.5 million,
) with $10.8 million and
General Dynamics Corp.
) with a $7 million contract.
On Nov 25, Northrop was selected by The Royal Thai Air Force to
supply additional AN/TPS-78 air defense and surveillance radar
systems. The company will start supplying the equipment in 2015
and also provide training, spares and logistics support.
On Nov 26, Northrop along with the U.S. Army successfully
demonstrated a warfighter-focused, net-centric battle command
system for integrated air and missile defense. This new command
battle system will integrate all defense components and provide
an edge to its operators in a war zone. These systems will ensure
future revenues for the company.
Northrop's diverse product offerings ensure a steady flow of
orders not only from the U.S. but also from foreign shores. In
fact, the threat of U.S. defense budget cuts has prompted the
company to look for other markets. We believe stepped up defense
spending in the Middle East and other Asian countries will keep
their revenue stream alive.
Northrop currently holds a Zacks Rank #2 (Buy).