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Northrop (NOC) Wins $83M Contract to Support MQ-4C Triton UAS
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Northrop Grumman Corp. (NOC - Free Report) recently secured a contract involving MQ-4C Triton unmanned aircraft. The award has been offered by the Naval Air Systems Command, Patuxent River, MD.
Details of the Deal
Valued at $83.1 million, the contract is projected to be completed by June 2026. Per the terms of the deal, Northrop will provide retrofit of two MQ-4C Triton unmanned aircraft systems (UAS) and one main operating base (MB-6P) to an Integrated Functional Capability Four, multiple-intelligence configuration.
A major portion of work related to this deal will be carried out in Palmdale, CA. The contract will serve the U.S. Navy and the government of Australia.
Importance of MQ-4C Triton
Northrop’s MQ-4C Triton UAS provides real-time intelligence, surveillance and reconnaissance (ISR) over vast ocean and coastal regions.
Triton is equipped with a unique and robust mission sensor suite that provides 360-degree coverage on all sensors, providing unprecedented maritime domain awareness for the U.S. Navy. Built for the U.S. Navy, Triton supports a wide range of missions, including maritime ISR patrol, signals intelligence, search and rescue and communications relay.
Such features of the MQ-4C Triton make it attractive for the military, thus resulting in NOC winning multiple orders for the same, like the latest one. This is likely to boost the revenue-generation prospects of the company from the UAS business arena.
Growth Prospects
Countries globally have been reinforcing their military resources due to intense geopolitical tensions and amplified terrorist threats. To this end, a military UAS that forms an integral part of any defense system due to its surveillance and reconnaissance abilities is likely to witness pent-up demand.
Per a report from Markets and Markets firm, the military unmanned aerial vehicle (UAV) market is projected to witness a CAGR of 7.9% over the 2022-2027 period. Such growth prospects may benefit Northrop as it offers a wide range of aerial vehicle that already enjoys an established position in the military UAV market.
The abounding growth prospects of the UAV market should also benefit other defense majors that have forayed into this market. These include Lockheed Martin (LMT - Free Report) , RTX Technologies (RTX - Free Report) and Kratos Defense & Security Solutions (KTOS - Free Report) .
Lockheed’s Skunk Works is involved in the designing of revolutionary ISR and UAS systems and associated enabling technologies. Some of its product ranges include Stalker, X-44, U-2S Dragon Lady, etc.
The company’s long-term earnings growth rate is 6.5%. The stock has a four-quarter average earnings surprise of 5.04%.
RTX’s Coyote unmanned aircraft system is equipped with an advanced seeker and warhead that can successfully identify and eliminate threat UAVs. It’s ideal for improved surveillance imagery, enhanced targeting capability, near real-time damage assessment and reduced threat to manned aircraft.
The company boasts a long-term earnings growth rate of 7.9%. The Zacks Consensus Estimate for RTX’s 2023 sales indicates an improvement of 9.9% from that reported in 2022.
Kratos is vertically integrated, possessing the technical expertise to design, build, operate and control some of the world’s most advanced unmanned platforms. Its UAS product range includes XQ-58A Valkyrie, UTAP-22 Mako, X-61A Gremlin, etc.
The consensus estimate for Kratos’ 2023 earnings suggests growth of 16.1% from the previous year’s reported figure. The stock has a four-quarter average earnings surprise of 5.04%.
Price Movement
In the past year, shares of Northrop have lost 10% compared with the industry’s decline of 4.1%.
Image: Bigstock
Northrop (NOC) Wins $83M Contract to Support MQ-4C Triton UAS
Northrop Grumman Corp. (NOC - Free Report) recently secured a contract involving MQ-4C Triton unmanned aircraft. The award has been offered by the Naval Air Systems Command, Patuxent River, MD.
Details of the Deal
Valued at $83.1 million, the contract is projected to be completed by June 2026. Per the terms of the deal, Northrop will provide retrofit of two MQ-4C Triton unmanned aircraft systems (UAS) and one main operating base (MB-6P) to an Integrated Functional Capability Four, multiple-intelligence configuration.
A major portion of work related to this deal will be carried out in Palmdale, CA. The contract will serve the U.S. Navy and the government of Australia.
Importance of MQ-4C Triton
Northrop’s MQ-4C Triton UAS provides real-time intelligence, surveillance and reconnaissance (ISR) over vast ocean and coastal regions.
Triton is equipped with a unique and robust mission sensor suite that provides 360-degree coverage on all sensors, providing unprecedented maritime domain awareness for the U.S. Navy. Built for the U.S. Navy, Triton supports a wide range of missions, including maritime ISR patrol, signals intelligence, search and rescue and communications relay.
Such features of the MQ-4C Triton make it attractive for the military, thus resulting in NOC winning multiple orders for the same, like the latest one. This is likely to boost the revenue-generation prospects of the company from the UAS business arena.
Growth Prospects
Countries globally have been reinforcing their military resources due to intense geopolitical tensions and amplified terrorist threats. To this end, a military UAS that forms an integral part of any defense system due to its surveillance and reconnaissance abilities is likely to witness pent-up demand.
Per a report from Markets and Markets firm, the military unmanned aerial vehicle (UAV) market is projected to witness a CAGR of 7.9% over the 2022-2027 period. Such growth prospects may benefit Northrop as it offers a wide range of aerial vehicle that already enjoys an established position in the military UAV market.
The abounding growth prospects of the UAV market should also benefit other defense majors that have forayed into this market. These include Lockheed Martin (LMT - Free Report) , RTX Technologies (RTX - Free Report) and Kratos Defense & Security Solutions (KTOS - Free Report) .
Lockheed’s Skunk Works is involved in the designing of revolutionary ISR and UAS systems and associated enabling technologies. Some of its product ranges include Stalker, X-44, U-2S Dragon Lady, etc.
The company’s long-term earnings growth rate is 6.5%. The stock has a four-quarter average earnings surprise of 5.04%.
RTX’s Coyote unmanned aircraft system is equipped with an advanced seeker and warhead that can successfully identify and eliminate threat UAVs. It’s ideal for improved surveillance imagery, enhanced targeting capability, near real-time damage assessment and reduced threat to manned aircraft.
The company boasts a long-term earnings growth rate of 7.9%. The Zacks Consensus Estimate for RTX’s 2023 sales indicates an improvement of 9.9% from that reported in 2022.
Kratos is vertically integrated, possessing the technical expertise to design, build, operate and control some of the world’s most advanced unmanned platforms. Its UAS product range includes XQ-58A Valkyrie, UTAP-22 Mako, X-61A Gremlin, etc.
The consensus estimate for Kratos’ 2023 earnings suggests growth of 16.1% from the previous year’s reported figure. The stock has a four-quarter average earnings surprise of 5.04%.
Price Movement
In the past year, shares of Northrop have lost 10% compared with the industry’s decline of 4.1%.
Image Source: Zacks Investment Research
Zacks Rank
Northrop currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.