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
A survey has shown that while a majority of Americans want to buy a car that contributes substantially to the U.S. economy amid rising trade tensions, most of the "American-made" cars are actually produced by foreign automakers. According to Cars.com's 2019 American-Made Index, the most 'American-made' vehicle in 2019 is the Jeep Cherokee. Streaming giant Netflix Inc. (NFXL) is set to lose the right to stream "The Office," one of the most popular TV show on the service. NBC Universal announced it is taking back the popular TV show for its own streaming platform, beginning January 2021. "We're sad that NBC has decided to take The... Chinese smartphone maker Xiaomi has announced that its recently launched Mi Band 4 crossed 1 million units sales in just eight days. Xiaomi's Director of Product Management Donovan Sung tweeted this news as he thanked Mi fans for the achievement. "Sharing some great news with our global Mi Fans....
Follow RTT