On Oct. 24, defense giant Northrop Grumman (NYSE:NOC) released Q3 earnings for the period ended Sept. 30, 2006. Shares are off about 4% since the announcement.
- Lower cost of sales and lower share count contributed to the 8.5% increase in EPS.
- The technical services, information technology, and electronics segments helped boost total revenues by a couple of percent.
- Long-term debt declined 17% because of $522 million in debt repayment in the first nine months of FY06.
- See what Fool Rich Smith was looking for this earnings report in "Foolish Forecast: Northrop Grumman Knocks."
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q3 2006 |
Q3 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$7,726 |
$7,433 |
$7,291 |
1.9% |
|
Net Profit |
-- |
$306 |
$291 |
5.2% |
|
EPS |
$1.07 |
$0.87 |
$0.80 |
8.5% |
|
Diluted Shares |
-- |
351 |
362 |
(3.1%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
17.93% |
15.06% |
2.87 |
|
Operating Margin |
7.35% |
6.01% |
1.34 |
|
Net Margin |
4.06% |
4.02% |
0.04 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,463 |
$1,712 |
(14.5%) |
|
Accounts Rec. |
$3,690 |
$3,519 |
4.9% |
|
Inventory |
$1,275 |
$1,262 |
1% |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$1,494 |
$1,581 |
(5.5%) |
|
Long-Term Debt |
$3,796 |
$4,569 |
(16.9%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
YTD 2006 |
YTD 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$1,567 |
$1,981 |
(20.9%) |
|
Capital Expenditures |
$493 |
$519 |
(5%) |
|
Free Cash Flow |
$1,074 |
$1,462 |
(26.5%) |
Find out why Fools always follow the money.
Related Companies:
- Boeing (NYSE:BA)
- Lockheed Martin (NYSE:LMT)
- General Dynamics (NYSE:GD)
Related Foolishness:
- Foolish Forecast: Northrop Grumman Knocks
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