Northrop, Wynyard Group Join Forces - Analyst Blog
10 Décembre 2012 - 4:50PM
Zacks
Northrop Grumman
Corporation (NOC) announced that it has entered into a
strategic alliance with Wynyard Group to market and develop joint
offerings to the US public sector and commercial markets.
Wynyard Group is a privately owned company that delivers powerful
software solutions in over 90 countries in the essential operating
areas of risk management, intelligence, investigations and digital
forensics.
The alliance is a win-win situation for both the companies. This
strategic alliance combines the market power, resources and
expertise of Northrop Grumman with Wynyard's leading specialist
knowledge and solutions in risk management, intelligence,
investigations and digital forensics.
Going forward, Northrop Grumman’s strong balance sheet and cash
flows provide substantial financial flexibility and a cushion for
improving shareholder value through incremental dividend, ongoing
share repurchases and earnings accretive acquisitions. In the third
quarter of 2012, the company repurchased 4.4 million shares for
approximately $290 million. At the end of the first nine months of
2012, the company had a low long-term debt-to-capitalization of
27.0%. Total long-term debt was approximately $3.9 billion, with no
significant maturities in the near term, along with cash holdings
of $3.5 billion.
Falls Church, Virginia-based Northrop Grumman Corporation is one of
the largest defense contractors in the U.S. The company supplies a
broad array of products and services to the U.S. Department of
Defense including electronic systems, information technology,
aircraft, space technology, and systems integration services. The
positive case for Northrop Grumman stems from revenue growth across
the board and a broad diversification of programs.
Northrop Grumman offers a strong program portfolio positioned to
take advantage of focus areas in the defense space, an improving
balance sheet and an ongoing share repurchase program. Also, its
product line in high priority categories, such as defense
electronics, unmanned aircraft and missile defense, gives Northrop
Grumman an edge over competition.
Northrop Grumman’s backlog is expected to see further upside in the
near future through unmanned aerial vehicle (UAV) platforms,
including Broad Area Maritime Surveillance (BAMS), Fire Scout and
Navy Unmanned Combat Air System (UCA).
Going forward, Northrop Grumman offers a strong program portfolio
positioned to take advantage of focus areas in the defense space,
an improving balance sheet and an ongoing share repurchase
program.
However, these are offset by apprehension regarding defense
cutbacks on high-cost platform programs, over-exposure to the DoD
budget, lower backlog, cost over-runs and reductions in Afghanistan
and Iraq operations.
Like its peers, Embraer SA (ERJ) and
General Dynamics Corporation (GD), the company
presently retains a short-term Zacks #3 Rank (Hold) that
corresponds with our long-term Neutral recommendation on the
stock.
EMBRAER AIR-ADR (ERJ): Free Stock Analysis Report
GENL DYNAMICS (GD): Free Stock Analysis Report
NORTHROP GRUMMN (NOC): Free Stock Analysis Report
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