Northrop Grumman Earnings: Exceeds Analyst Expectations

S&P 500 (NYSE:SPY) component Northrop Grumman Corporation (NYSE:NOC) reported its results 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 Corporation Earnings Cheat Sheet

Results: Net income for the aerospace/defense fell to $459 million ($1.82 per share) vs. $520 million ($1.86 per share) a year earlier. This is a decline of 11.7% from the year-earlier quarter.

Revenue: Fell 5.2% to $6.27 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Northrop Grumman Corporation reported adjusted net income of $1.73 per share. By that measure, the company beat the mean estimate of $1.70 per share. Analysts were expecting revenue of $6.18 billion.

Quoting Management: “Our focus on performance, effective cash deployment, and portfolio alignment continues to create value for our shareholders, customers and employees. We are working closely with our customers to bring innovative, affordable solutions to support their needs in today’s fiscally constrained environment,” said Wes Bush, chairman, chief executive officer and president.

Key Stats:

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 18 cents in the second quarter, by 29 cents in the first quarter, and by 17 cents in the fourth quarter of the last fiscal year.

Revenue has dropped for four quarters in a row. Revenue declined 4.4% to $6.27 billion in the second quarter. The figure fell 8% in the first quarter from the year earlier and dropped 24.4% in the fourth quarter of the last fiscal year from the year-ago quarter.

For three quarters in a row, the company’s net income has fallen. In the second quarter, net income fell 7.7% from the year earlier, while the figure fell 4.5% in the first quarter.

Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the fourth quarter has risen to $1.71 per share from $1.68. In the last thirty days, the average estimate for the fiscal year has moved up from $7.23 per share to $7.25.

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

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