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Can Northrop Grumman Beat These Numbers?

By Seth Jayson - Updated Apr 7, 2017 at 12:16PM

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Checking expectations

Northrop Grumman (NYSE: NOC) is expected to report Q3 earnings on Oct. 24. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Northrop Grumman's revenues will wane -4.2% and EPS will drop -9.1%.

The average estimate for revenue is $6.34 billion. On the bottom line, the average EPS estimate is $1.69.

Revenue details
Last quarter, Northrop Grumman booked revenue of $6.27 billion. 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 details
Last quarter, EPS came in at $1.88. 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.

Recent performance
For the preceding 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.

Looking ahead

The full year's average estimate for revenue is $25.19 billion. The average EPS estimate is $7.22.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 793 members out of 856 rating the stock outperform, and 63 members rating it underperform. Among 247 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 235 give Northrop Grumman a green thumbs-up, and 12 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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Stocks Mentioned

Northrop Grumman Corporation Stock Quote
Northrop Grumman Corporation
NOC
$470.76 (1.09%) $5.06

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