Northrop Grumman Corp Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Northrop Grumman Corp (NYSE:NOC) will unveil its latest earnings on Wednesday, July 27, 2011. Northrop Grumman Corporation 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 $1.67 per share, a rise of 3.7% 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 $1.68. Between one and three months ago, the average estimate moved down, but it has been unchanged at $1.67 during the last month. For the year, analysts are projecting profit of $6.72 per share, a rise of 10.3% from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the first quarter, the company reported net income of $1.44 per share versus a mean estimate of profit of $1.55 per share. In fourth quarter of the last fiscal year, the company beat estimates by 26 cents.

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Wall St. Revenue Expectations: On average, analysts predict $6.97 billion in revenue this quarter, a decline of 21.1% from the year ago quarter. Analysts are forecasting total revenue of $27.62 billion for the year, a decline of 20.5% from last year’s revenue of $34.76 billion.

Analyst Ratings: Analysts seem relatively indifferent about Northrop Grumman with 20 of 22 analysts surveyed maintaining a hold rating.

Key Stats:

The increase in profit in the first quarter comes after net income fell in the previous quarter. In the first quarter, net income rose 13% to $530 million. In the fourth quarter of the last fiscal year, net income fell 9%.

Revenue fell in the first quarter after seeing a rise the quarter before. Revenue dropped 21.8% to $6.73 billion in the first quarter from the year earlier. In the fourth quarter of the last fiscal year, revenue rose 11%.

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 April 26, 2011 to July 21, 2011, the stock price had risen $3.54 (5.7%) from $62.01 to $65.55. The stock price saw one of its best stretches over the last year between June 23, 2011 and July 1, 2011 when shares rose for seven-straight days, rising 6.3% (+$4.16) 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% (-$5.63) over that span. Shares are up $7.64 (+13.2%) year to date.

(Source: Xignite Financials)

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