By Masam Abbas - April 23, 2013 | Tickers: BEAV, NOC, BA | 0 Comments <\/p>\n
Masam is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited. <\/p>\n
After Obamas signing on defense sequestration and budget cuts, many have formed a bearish point of view on the aerospace and defense stocks. Lets see if this point of view needs to be rectified to some extent. <\/p>\n
The large-cap defense stock, Northrop Grumman (NYSE: NOC), reports on April 24. The company is expected to post EPS of $1.74 according to consensus estimates. <\/p>\n
The following organic growth rates are expected for each of the companys segments: <\/p>\n
(1) Information Systems down 10%, <\/p>\n
(2) Aerospace Systems down 2%, <\/p>\n
(3) Electronic Systems down 1% <\/p>\n
(4) Technical Services down 9% <\/p>\n
The company is expected to burn a free cash flow of $200 billion. This has been the norm in the first quarter of the year, given the seasonality of Northrops free cash flow generation. <\/p>\n
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Originally posted here: <\/p>\n
Sequestration: Is it a Valid Reason to Short the Aerospace industry?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" By Masam Abbas - April 23, 2013 | Tickers: BEAV, NOC, BA | 0 Comments Masam is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited. After Obamas signing on defense sequestration and budget cuts, many have formed a bearish point of view on the aerospace and defense stocks. Continue reading