Northrop Grumman Earnings: Here’s Why Investors are Buying Shares Now

Northrop Grumman Corporation (NYSE:NOC) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1%.

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Northrop Grumman Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 3.57% to $2.03 in the quarter versus EPS of $1.96 in the year-earlier quarter.

Revenue: Decreased 1.52% to $6.1 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Northrop Grumman Corporation reported adjusted EPS income of $2.03 per share. By that measure, the company beat the mean analyst estimate of $1.74. It beat the average revenue estimate of $5.96 billion.

Quoting Management: “Strong operating performance and effective cash deployment drove first quarter results. Looking ahead, we recognize that we are operating in an uncertain and constrained budget environment. We are maintaining our focus on program performance, effective cash deployment and portfolio alignment as we drive to best serve our shareholders, customers and employees,” said Wes Bush, chairman, chief executive officer and president.

Key Stats (on next page)…

Revenue decreased 5.74% from $6.48 billion in the previous quarter. EPS decreased 5.14% from $2.14 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.74 to a profit $1.73. For the current year, the average estimate has moved up from a profit of $6.99 to a profit of $7.02 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]