Northrop Grumman Corp Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Northrop Grumman Corp (NYSE:NOC) will unveil its latest earnings on Wednesday, February 1, 2012. Northrop Grumman offers its global customers innovative products, services, and solutions in information and services, aerospace, electronics, and shipbuilding.

Northrop Grumman Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.68 per share, a rise of 32.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.69. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month. Analysts are projecting profit to rise by 15.3% versus last year to $7.02.

Past Earnings Performance: The company showed profit of $1.63 per share versus a mean estimate of net income of last quarter. This marks the fourth month of falling short of estimates.

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Wall St. Revenue Expectations: Analysts are projecting a decline of 22.3% in revenue from the year-earlier quarter to $6.69 billion.

Analyst Ratings: Analysts seem relatively indifferent about Northrop Grumman with 16 of 18 analysts surveyed maintaining a hold rating.

A Look Back: In the third quarter, profit rose 4.6% to $520 million ($1.86 a share) from $497 million ($1.67 a share) the year earlier, but fell short analyst expectations. Revenue fell 24.1% to $6.61 billion from $8.71 billion.

Key Stats:

Revenue has fallen for the past three quarters. Revenue fell 25.7% in second quarter from the year earlier and 21.8% in the first quarter.

While the company has been profitable for the last eight quarters, income has fallen year over year by an average of 4.5% over the past four quarters. The quarter hit the hardest was the second quarter, that saw a 26.9% drop.

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).

Stock Price Performance: During November 28, 2011 to January 26, 2012, the stock price had risen $4.50 (8.2%) from $54.82 to $59.32. The stock price saw one of its best stretches over the last year between October 3, 2011 and October 12, 2011 when shares rose for eight-straight days, rising 8.8% (+$4.41) over that span. It saw one of its worst periods between July 6, 2011 and July 18, 2011 when shares fell for nine-straight days, falling 8% (-$5.53) over that span.

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

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