Northrop Grumman Corp Earnings: Beats the Street on Profit Rise

S&P 500 (NYSE:SPY) component Northrop Grumman Corporation (NYSE:NOC) reported net income above Wall Street’s expectations for the fourth quarter. Northrop Grumman offers its global customers innovative products, services, and solutions in information and services, aerospace, electronics, and shipbuilding.

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Northrop Grumman Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Northrop Grumman Corporation rose to $548 million ($2.09 per share) vs. $376 million ($1.03 per share) in the same quarter a year earlier. This marks a rise of 45.7% from the year earlier quarter.

Revenue: Fell 5.8% to $6.51 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: NOC beat the mean analyst estimate of $1.68 per share. It fell short of the average revenue estimate of $6.69 billion.

Quoting Management: “Fourth quarter and full year results demonstrate our progress in achieving superior operating performance and effective cash deployment. Our businesses drove higher operating income, earnings, cash and a strong book-to-bill ratio for the quarter. Our 2012 guidance reflects our continued commitment to performance, affordability for our customers and strong cash generation. While we are in a challenging environment, we believe that we can continue to create value for shareholders, customers and employees,” said Wes Bush, chairman, chief executive officer and president.

Key Stats:

The company beat estimates last quarter after falling short in the previous two quarters. In the third quarter, it missed the mark by 5 cents, and in the second quarter, it fell short by 9 cents.

Net income has increased 5.5% year over year on average across the last five quarters. The biggest gain came in the most recent quarter, when income climbed 45.7% from the year earlier quarter.

Looking Forward: Over the past ninety days, the average estimate for the first quarter of the next fiscal year has fallen from $1.68 per share to $1.65, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is $7.02 per share, down from $7.03 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at

To contact the editor responsible for this story: Damien Hoffman at