Northrop Grumman Corp Third Quarter Earnings on Horizon

S&P 500 (NYSE:SPY) component Northrop Grumman Corp (NYSE:NOC) will unveil its latest earnings on Wednesday, October 26, 2011. 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 2.4% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 13% versus last year to $6.88.

Past Earnings Performance: The company is looking to break the streak of missing estimates in the past two quarters. Last quarter, it fell short of analyst expectations by reporting profit of $1.59 per share against an estimate of net income of $1.68 per share. The quarter before that, it missed forecasts by 11 cents.

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Wall St. Revenue Expectations: On average, analysts predict $6.84 billion in revenue this quarter, a decline of 21.5% from the year ago quarter. Analysts are forecasting total revenue of $26.99 billion for the year, a decline of 22.4% from last year’s revenue of $34.76 billion.

Analyst Ratings: Analysts seem relatively indifferent about Northrop Grumman with 18 of 20 analysts surveyed maintaining a hold rating.

A Look Back: In the second quarter, profit fell 26.9% to $520 million ($1.81 a share) from $711 million ($2.34 a share) the year earlier, missing analyst expectations. Revenue fell 25.7% to $6.56 billion from $8.83 billion.

Key Stats:

Revenue has fallen in the past two quarters. In the first quarter, the figure fell 21.8%.

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 July 27, 2011 to October 20, 2011, the stock price had fallen $7.98 (-12.9%) from $62.09 to $54.11. 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 8.7% (+$4.45) 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% (-$5.58) over that span. Shares are down $3.25 (-5.7%) year to date.

(Source: Xignite Financials)

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