Northrop: E-2D for Full Production - Analyst Blog
12 Février 2013 - 5:30PM
Zacks
Northrop Grumman Corporation’s (NOC) E-2D
Advanced Hawkeye has received approval from the Office of the
Secretary of Defense (“OSD”) for full-rate production as the
aircraft has been proved to be suitable and effective for
operations. The OSD has reached this decision after a successful
10-month initial operational test and evaluation (IOT&E)
conducted by the U.S. Navy.
The IOT&E is conducted by the U.S. Navy's Air Test and
Evaluation Squadron One for every new system. This is a rigorous
phase of testing in order to determine that the new system is
operationally effective and suitable for fleet introduction. When
the system clears this testing, it is allowed for full-rate
production that leads to a multiyear procurement of the system.
Designed and manufactured by Northrop Grumman, the E-2D Advanced
Hawkeye is the newest variant of the E-2 aircraft platform. It
comprises of a high-tech radar with a two-generation leap. It also
has an upgraded aircraft system that increases speed. To date, the
company has delivered nine E-2Ds to the U.S. Navy on or ahead of
schedule. Also, 11 additional aircrafts are in various stages of
manufacturing and pre-delivery flight testing.
E-2D is a multi-mission platform. Through its ability to coordinate
concurrent missions, E-2D can provide land force support, rescue
operations, and manage a reliable communications network between
widely dispersed nodes. Hawkeye’s new glass cockpit and tactical
fourth operator display provide the five-person crew more
flexibility in fulfilling the diversified nature of work. Moreover,
its ability to work near the coastline as well as over land helps
in protecting the nation’s interests.
The E-2D industry team is focused on providing the most capable and
cost-effective airborne early warning and command and control
solution to its customers. The approval would help the company in
performing the contracts on schedule.
Northrop Grumman is a leading global security company providing
innovative systems, products and solutions in unmanned systems,
cybersecurity, Command, Control, Communications, Computers,
Intelligence, Surveillance and Reconnaissance (C4ISR), and
logistics and modernization to government and commercial customers
worldwide.
Northrop’s product line is well positioned in high priority
categories, such as defense electronics, unmanned aircraft and
missile defense. Revenue and earnings growth continue to be driven
by its strong presence in the current focus areas of cyber
security, modernization of defense and homeland security assets,
intelligence, surveillance and reconnaissance systems, advanced
electronics and software development.
Recently, the company released fourth quarter and full year
results. The company reported earnings of $2.06 per share compared
with $1.85 per share in the fourth quarter of 2011. The reported
figure also comfortably surpassed the Zacks Consensus Estimate of
$1.74 per share. Sales for the reported quarter decreased 0.5% year
over year to $6.5 billion. However, sales came in above the Zacks
Consensus Estimate by $154 million.
The upbeat earnings will however be tempered by apprehension
regarding defense cutbacks on high-cost platform programs,
over-exposure to the DoD budget, lower backlog, cost over-runs and
reductions in the Afghanistan and Iraq operations. The company
presently retains a short-term Zacks Rank #3 (Hold).
Other stocks to consider are Huntington Ingalls
Industries, Inc. (HII) that carries a Zacks Rank #1
(Strong Buy) and Esterline Technologies Corp.
(ESL) and Lockheed Martin Corporation (LMT) with a
Zacks Rank #2 (Buy).
ESTERLINE TECHN (ESL): Free Stock Analysis Report
LOCKHEED MARTIN (LMT): Free Stock Analysis Report
NORTHROP GRUMMN (NOC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Northrop Grumman (NYSE:NOC)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024
Northrop Grumman (NYSE:NOC)
Graphique Historique de l'Action
De Juil 2023 à Juil 2024