Northrop Receives Army Contract - Analyst Blog
11 Janvier 2013 - 5:40PM
Zacks
Northrop Grumman
Corporation (NOC) clinched a six-year contract to upgrade
the current instrumentation systems at the National Training and
Joint Readiness Training centers. The contract was received from
the U.S. Army Program Executive Office for Simulation, Training and
Instrumentation (“PEO STRI”) for an undisclosed amount.
The National Training and Joint
Readiness Training outfits are located in Fort Irwin, California
and Forth Polk, Louisiana, respectively. These centers offer
real-life simulation exercises for the training of land forces at
the combat level which also includes secondary and supporting units
in a plethora of military operations.
Per the contract, Northrop Grumman
will offer its services in improving the observer controller
communications part of the present range communications system at
the National Training center and also the range data measurement
system.
Similarly, at the Joint Readiness
Center, the company will modernize the observer controller
communications and range data measurement systems.
The project, Combat Training Center
Instrumentation System (“CTC-IS”), will substitute technical
features like legacy voice, video, data and target instrumentations
system and networks. Apart from this, Northrop will enhance other
technical mission necessities like mobile video units, unmanned
aerial vehicle ground control station interface, forward operations
base interface as well as the stationed and portable after-action
theaters.
The purpose behind the
modernization program is to create a cohesion between the
components of a tangible training system and a widened
communications base. The program will accentuate situational
awareness in live combat exercises; improve analysis and provide
timely feedbacks of training performances and address all other
important needs to prepare U.S. soldiers on critical missions.
Looking forward, we anticipate this
endeavor will prove to be profitable and help fetch lucrative
returns for the company. Northrop sustained its string of contract
wins by recently securing an $80 million deal for the
indefinite-quantity/indefinite-delivery of Next Generation Command
and Control Processor ("NGC2P") Technology Refresh and Link 22
development to the Space Naval and Warfare System Command.
The company has potential upside
opportunities so far as backlog orders are concerned by virtue of
its unmanned aerial vehicle ("UAV") programs involving Broad Area
Maritime Surveillance ("BAMS"), Fire Scout and Navy Unmanned Combat
Air System ("UCA").
However, the U.S. government's
decision to cut back spending in the defense sector will cast a
shadow on the company’s prospects. This negative trigger is
reflected in the company’s Zacks Consensus Estimate for the last
quarter of 2012 which slid 6.05% year over year to $1.74 per share.
Nonetheless Northrop Grumman currently carries a Zacks Rank #3
(Hold).
Another player in the aerospace and
defense domain is General Dynamics Corporation
(GD). The company recently won a $32 million contract from Northrop
Grumman for providing software related to the Communications Ground
Control System for NATO’s Alliance Ground Surveillance (“AGS”)
program.
Based in Falls Church, Virginia,
the $16.54 billion company provides products, services, and
solutions in aerospace, electronics, information systems, and
technical services worldwide.
GENL DYNAMICS (GD): Free Stock Analysis Report
NORTHROP GRUMMN (NOC): Free Stock Analysis Report
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