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.
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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