On April 24, defense contractor Northrop Grumman
- Revenues rose by 3.5%, backed by over 10% revenue growth in information systems, and partially offset by a decline in revenues from the aerospace division.
- Management says results were slightly affected by a shipbuilder's strike in Mississippi.
- Total revenue for 2007 is expected to be between $31 billion and $32 billion, with EPS from continuing operations in a range between $4.80 and $5.05. Look for $2.5 billion to $2.8 billion in net cash from operating activities.
- Northrop rates a middling three stars out of five in Motley Fool CAPS.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$7,344 |
$7,093 |
3.5% |
|
Net Profit* |
$387 |
$362 |
6.9% |
|
EPS |
$1.10 |
$1.03 |
6.8% |
|
Diluted Shares |
358.3 |
350.8 |
2.1% |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
No Data |
No Data |
No Data |
|
Operating Margin |
9.3% |
8.5% |
0.8 |
|
Net Margin |
5.3% |
5.1% |
0.2 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$362 |
$373 |
(2.9%) |
|
Accounts Rec. |
$3,749 |
$4,144 |
(9.5%) |
|
Inventory |
$1,195 |
$1,294 |
(7.7%) |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Long-Term Debt* |
$4,392 |
$4,714 |
(6.8%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$400 |
($115) |
N/A |
|
Capital Expenditures* |
$188 |
$173 |
8.7% |
|
Free Cash Flow |
$212 |
($288) |
N/A |
Free cash flow is a Fool's best friend.
Related Foolishness:
- Foolish Forecast: Get to Know Northrop
- Foolish Forecast: Locking In on Lockheed
- Foolish Forecast: Raytheon Rumbles
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
