The 10-second takeaway
For the quarter ended June 30 (Q2), Northrop Grumman beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share grew.
Gross margins increased, operating margins shrank, net margins dropped.
Northrop Grumman booked revenue of $6.27 billion. The 16 analysts polled by S&P Capital IQ expected sales of $6.19 billion on the same basis. GAAP reported sales were 4.4% lower than the prior-year quarter's $6.56 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.88. The 21 earnings estimates compiled by S&P Capital IQ anticipated $1.61 per share. GAAP EPS of $1.88 for Q2 were 3.9% higher than the prior-year quarter's $1.81 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 21.6%, 30 basis points better than the prior-year quarter. Operating margin was 12.3%, 50 basis points worse than the prior-year quarter. Net margin was 7.7%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $6.31 billion. On the bottom line, the average EPS estimate is $1.66.
Next year's average estimate for revenue is $25.06 billion. The average EPS estimate is $6.87.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 796 members out of 857 rating the stock outperform, and 61 members rating it underperform. Among 234 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 221 give Northrop Grumman a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Northrop Grumman is hold, with an average price target of $62.44.
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