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.
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 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.
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.
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.
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.
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