Northrop Grumman's (NOC) Unit Inks $1.3B Deal for LITENING

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Northrop Grumman Corporation 's NOC 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 , The Boeing Company BA and Huntington Ingalls Industries, Inc. HII .

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.

Price Movement

Northrop Grumman's stock has lost 26.1% in the past 12 months, wider than the industry 's decline of 14.7%.

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 .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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