logo
Plus   Neg
Share
Email

Northrop Grumman Gets US Approval To Buy Orbital ATK; Lifts 2018 Outlook

Northrop Grumman Corp.(NOC) said Tuesday that the U.S. Federal Trade Commission or FTC has cleared Northrop Grumman's proposed acquisition of Orbital ATK Inc. The FTC's Bureau of Competition has completed its review of the merger, and the Premerger Notification Office has informed the company that the waiting period under the HSR Act has terminated, allowing the companies to complete the merger.

As part of that clearance, the FTC issued a decision and order providing for solid rocket motors to be available on a non-discriminatory basis under specified circumstances and under processes defined in the order. The company expects to complete the transaction after market close tomorrow and is issuing the following updated guidance. This updated guidance assumes the completion of the transaction tomorrow.

Northrop Grumman now expects 2018 sales of about $30 billion, earnings per share of $16.20 to $16.45. Previously, the company expected sales of about $27.00 billion, and earnings per share of $15.40 to $15.65. Wall Street currently is looking for fiscal year 2018 earnings of $15.85 per share on annual revenues of $27.12 billion.

Northrop Grumman stated that the updated 2018 guidance reaffirmed its stand-alone guidance provided on April 25, 2018 and reflected the expected results of Innovation Systems for the remainder of the year. Updated guidance reflects a partial year of acquisition-related purchased intangibles amortization of approximately $175 million; this estimate is subject to the completion of purchase accounting and other post-closing activities.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Coffee giant Starbucks Corp. unveiled its sixth and the world's largest Starbucks Reserve Roastery on Chicago's Magnificent Mile, featuring Starbucks Reserve specialty coffee menu, boutique Milanese Princi bakery, and Arriviamo Bar for coffee cocktails. It will throw open the iconic five-storey glass-clad building in 35,000 square feet space, employing about 200 people, to the public on Friday. Retail giant Walmart Inc. reported Thursday a profit for the third quarter that more than doubled from last year, reflecting higher revenues and strength at Walmart U.S. and International. Adjusted earnings per share topped analysts' expectations, while revenues missed it. The company also raised its adjusted earnings outlook for the full-year 2020. German science and technology company Merck KGaA reported Thursday a slight increase in third-quarter profit, despite good growth in sales. The company further lifted its fiscal 2019 earnings and sales view following the closing of the Versum Materials acquisition. Shares of Merck were losing around 2 percent in the morning trading in Germany.
RELATED NEWS
Follow RTT
>