Northrop Grumman Corporation Earnings Cheat Sheet: Revenue Ticks Lower

S&P 500 (NYSE:SPY) component Northrop Grumman Corporation (NYSE:NOC) saw profit fall amid falling revenue. Northrop Grumman Corporation 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 Second Quarter

Results: Net income for Northrop Grumman Corporation fell to $520 million ($1.81 per share) vs. $740 million ($2.44 per share) a year earlier. This is a decline of 29.7% from the year earlier quarter.

Revenue: Fell 9.6% to $6.56 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: NOC reported adjusted net income of $1.59 per share. By that measure, the company fell short of mean estimate of $1.67 per share. It fell short of the average revenue estimate of $6.97 billion.

Quoting Management: “Our focus on performance, our portfolio and effective cash deployment continues to generate value in a challenging budget environment. While sales for the quarter were impacted by several factors, the strong margin rates generated by our businesses largely offset the effects of lower sales. Based on our year-to-date results we are increasing our EPS guidance and maintaining our guidance for cash generation, despite a reduced top line outlook that reflects the realities of our current budget environment,” said Wes Bush, chairman, chief executive officer and president.

Key Stats:

The company has now fallen short of estimates in the last two quarters. In the first quarter, it missed expectations by 11 cents with net income of $1.44 versus a mean estimate of net income of $1.55 per share.

Net income has increased 11.8% year over year on average across the last five quarters. The biggest gain came in the second quarter of the last fiscal year, when income climbed 80.5% from the year earlier quarter.

Revenue has fallen in the past two quarters. In the first quarter, revenue declined 21.8% to $6.73 billion from the year earlier quarter.

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).

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(Source: Xignite Financials)

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