Northrop's Euro Hawk Endures - Analyst Blog

Defense operator Northrop Grumman Corporation (NOC) and Cassidian, the defense and security division of European Aeronautics, Defense & Space Co., have jointly developed an unmanned aircraft system for the German Air Force. The aircraft Euro Hawk successfully passed the endurance test with a 30.3-hour flight over Edwards Air Force Base, California.

Euro Hawk (R) is the first international configuration of the RQ-4 Global Hawk high-altitude, long-endurance unmanned aircraft system. This aircraft has already logged 100 total flight hours since its first flight five months ago. Euro Hawk will undergo some more test flights before it is delivered to the German Air Force in end 2011.

With a wingspan larger than a commercial airliner, endurance of 30 hours and a maximum altitude of more than 60,000 feet, Euro Hawk is an interoperable, modular and cost-effective replacement to the aging German fleet of manned Breguet Atlantic aircraft.

Northrop Grumman has been working to develop unmanned aircraft jointly with other defense operators. Recently, Fire-X, a vertical unmanned air system developed by Northrop Grumman and Bell Helicopter, a Textron Company (TXT), completed its first fully autonomous flight.

During the third quarter earnings call, the company announced 2010 earnings per share in a range of $6.85 to $7.00. The Zacks Consensus Estimates for fourth quarter fiscal 2010, fiscal year 2010 and fiscal year 2011 are $1.24 per share, $6.78 per share and $6.88 per share, respectively.

Cassidian is a global leader in security solutions and systems, providing lead system integration and value-added products and services to civil and military customers around the world.

Northrop presently has a Zacks #3 Rank (short-term Hold recommendation) on the shares. We also maintain our "Neutral" long-term recommendation on the stock.

Based in Los Angeles, California, Northrop Grumman provides products, services, and integrated solutions in the aerospace, electronics, information and services, and shipbuilding sectors in the U.S. and all over the world.

 
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