NOC – Market expectations are for Uniform ROA to decline, but management is confident about their aircraft projects, sales growth, and backlog

• Northrop Grumman Corporation (NOC:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 16.3x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, but management is confident about their F-16 and B-21 projects, Cyber & Intelligence Mission Solutions sales growth, and their backlog growth
  

• Specifically, management is confident the F-16 electronic warfare suite project is potentially worth $2.5 billion, Cyber & Intelligence Mission Solutions sales have increased year-over-year, and that their decision to divest the testing business for cluster munitions is positive for investors. In addition, they are confident their completed B-21 project will be more mature than previous aircraft development programs and they can maintain their backlog growth