Northrop Grumman Corp Earnings Cheat Sheet: Consecutive Profit Quarter Streak Stays Intact

S&P 500 (NYSE:SPY) component Northrop Grumman Corporation (NYSE:NOC) reported net income above Wall Street’s expectations for the third 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 Third Quarter

Results: Net income for Northrop Grumman Corporation rose to $520 million ($1.86 per share) vs. $497 million ($1.67 per share) in the same quarter a year earlier. This marks a rise of 4.6% from the year earlier quarter.

Revenue: Fell 6.5% to $6.61 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 $6.84 billion.

Quoting Management: “Superior operating performance in our businesses drove higher operating income, earnings, cash and a strong book-to-bill ratio for the quarter. Based on year-to-date operating results and effective cash deployment, we are again raising our 2011 EPS guidance. The combination of performance and share repurchases continues to produce strong earnings per share growth despite top line pressures,” 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 second quarter, it missed the mark by 9 cents, and in the first quarter, it fell short by 11 cents.

Revenue has fallen for the past three quarters. In the second quarter, revenue declined 25.7% to $6.56 billion while the figure fell 21.8% in the first quarter from the year earlier.

The increase in profit last quarter comes after net income fell in the previous quarter. In the second quarter, net income declined 26.9% to $520 million.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the fourth quarter is $1.72 per share, up from $1.69 ninety days ago. The average estimate for the fiscal year is $6.88 per share, a rise from $6.73 ninety days ago.

Competitors to Watch: Lockheed Martin Corp. (NYSE:LMT), General Dynamics Corp. (NYSE:GD), The Boeing Company (NYSE:BA), Raytheon Company (NYSE:RTN), Kratos Defense & Security Solutions, Inc (NASDAQ:KTOS), L-3 Communications Hldgs., Inc. (NYSE:LLL), ITT Corporation (NYSE:ITT), Cubic Corporation (NYSE:CUB), Rockwell Collins, Inc. (NYSE:COL), and BAE Systems PLC (BAESY).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)