Please ensure Javascript is enabled for purposes of website accessibility

Northrop Grumman Beats Analyst Estimates on EPS

By Seth Jayson - Updated Apr 7, 2017 at 12:11PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Just the facts, Fool.

Northrop Grumman (NYSE: NOC) reported earnings on Oct. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Northrop Grumman met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted slightly.

Margins contracted across the board.

Revenue details
Northrop Grumman logged revenue of $6.27 billion. The 15 analysts polled by S&P Capital IQ hoped for revenue of $6.34 billion on the same basis. GAAP reported sales were 5.2% lower than the prior-year quarter's $6.61 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.82. The 21 earnings estimates compiled by S&P Capital IQ predicted $1.69 per share. GAAP EPS of $1.82 for Q3 were 2.2% lower than the prior-year quarter's $1.86 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 20.9%, 50 basis points worse than the prior-year quarter. Operating margin was 11.7%, 80 basis points worse than the prior-year quarter. Net margin was 7.3%, 60 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $6.38 billion. On the bottom line, the average EPS estimate is $1.71.

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

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 794 members out of 858 rating the stock outperform, and 64 members rating it underperform. Among 244 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 234 give Northrop Grumman a green thumbs-up, and 10 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 $63.47.

Can your portfolio provide you with enough income to last through retirement? You'll need more than Northrop Grumman. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

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

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.