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
Pfizer said Friday it reached a multi-year deal with Gilead Sciences to manufacture and supply Gilead's investigational antiviral remdesivir for COVID-19 patients. Ferring Pharmaceuticals US is recalling various nasal sprays citing superpotency or amounts of desmopressin higher than specified, the U.S. Food and Drug Administration announced in a statement. The recall involves all lots on the market of DDAVP Nasal Spray 10 mcg/0.1mL, Desmopressin Acetate Nasal Spray 10 mcg/0.1mL, and STIMATE Nasal Spray 1.5 mg/mL. U.S. President Donald Trump has issued executive orders to ban Chinese mobile application TikTok as well as WeChat, citing a threat to national security and its economy. China's ByteDance Ltd. owns TikTok, a video-sharing mobile app, while Tencent Holdings Ltd. owns WeChat, a messaging, social media, and electronic payment app.
RELATED NEWS
Follow RTT