Northrop Grumman Corporation (NOC) was awarded a contract to continue the modernization and training of the Saudi Arabia National Guard (SANG). The five-year, cost-plus-award-fee hybrid contract has a potential value of $550 million.
Under the terms of the contract, Northrop Grumman’s subsidiary Vinnell Arabia LLC will provide U.S. Army-based doctrine and military training as well as logistics and support services to SANG. Work will be performed throughout the Kingdom of Saudi Arabia.
Northrop Grumman’s success in the competitive defense industry depends upon its ability to develop and market its defense-related products and services to the U.S. government, as well as its ability to provide people, technologies, facilities, equipment and financial capacity needed to deliver those products and services at maximum efficiency. The company competes with Force Protection Inc. (FRPT), General Dynamics Corporation (GD) and Boeing Company (BA).
Based in Los Angeles, California, Northrop Grumman provides products, services and solutions in information and services, aerospace, electronics and shipbuilding to the military, government and commercial customers of United States and beyond. The company is the largest IT service provider to the federal government.
Northrop Grumman is slated to release its fiscal 2009 results on Feb 4, 2010. The company expects its earnings per share in the range of $5.00 – $5.15 for fiscal 2009; a tad lower than the Zacks Consensus Estimate of $5.16 for the fiscal 2009. We maintain our Neutral recommendation on the shares.
Read the full analyst report on “NOC”
Read the full analyst report on “FRPT”
Read the full analyst report on “GD”
Read the full analyst report on “BA”
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