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Northrop Grumman Third Quarter Earnings
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NOC
Northrop Grumman (NYSE:NOC) announced its results for the third quarter on October 24, 2012. Northrop Grumman offers its global customers innovative products, services, and solutions in information and services, aerospace, electronics, and shipbuilding.
In most situations, when earnings do not meet analyst estimates, a business' stock price will tend to drop. On the other hand, when actual earnings beat estimates by a significant amount, the share price will likely surge. SEE: Everything Investors Need To Know About Earnings
The Numbers: Northrop Grumman beat expectations with its latest EPS and revenue figures. The company reported adjusted net income of $1.73 per share versus the $1.70 per share estimate and revenues of $6.27 billion versus the $6.18 billion estimate. Revenue fell 5.2% from the same period last year. Revenue has fallen in the past four quarters. Northrop Grumman reported net income of $459 million during the third quarter. This is a 11.7% decline from last year. Last quarter marks the third in a row in which the company's net income has fallen. Profits declined 7.7% in the second quarter and 4.5% in the first quarter.
Management Quote: "Our focus on performance, effective cash deployment, and portfolio alignment continues to create value for our shareholders, customers and employees. We are working closely with our customers to bring innovative, affordable solutions to support their needs in today's fiscally constrained environment," said Wes Bush, chairman, chief executive officer and president.
A Look Back: Net income has increased 5.3% year-over-year on average across the last five quarters. The biggest gain came in the fourth quarter of the last fiscal year, when income climbed 45.7% from the year-earlier quarter.
Looking Ahead: For next quarter, analysts have a more positive outlook about the company's expected results. The average estimate for the fourth quarter is $1.71 per share, up from $1.68 90 days ago. When analyst increase earnings estimates investors can assume business has been stronger than first thought and is an encouraging sign for investors. In the last thirty days, the average estimate for the fiscal year has moved up from $7.23 per share to $7.25.
In most situations, when earnings do not meet analyst estimates, a business' stock price will tend to drop. On the other hand, when actual earnings beat estimates by a significant amount, the share price will likely surge. SEE: Everything Investors Need To Know About Earnings
The Numbers: Northrop Grumman beat expectations with its latest EPS and revenue figures. The company reported adjusted net income of $1.73 per share versus the $1.70 per share estimate and revenues of $6.27 billion versus the $6.18 billion estimate. Revenue fell 5.2% from the same period last year. Revenue has fallen in the past four quarters. Northrop Grumman reported net income of $459 million during the third quarter. This is a 11.7% decline from last year. Last quarter marks the third in a row in which the company's net income has fallen. Profits declined 7.7% in the second quarter and 4.5% in the first quarter.
Management Quote: "Our focus on performance, effective cash deployment, and portfolio alignment continues to create value for our shareholders, customers and employees. We are working closely with our customers to bring innovative, affordable solutions to support their needs in today's fiscally constrained environment," said Wes Bush, chairman, chief executive officer and president.
A Look Back: Net income has increased 5.3% year-over-year on average across the last five quarters. The biggest gain came in the fourth quarter of the last fiscal year, when income climbed 45.7% from the year-earlier quarter.
Looking Ahead: For next quarter, analysts have a more positive outlook about the company's expected results. The average estimate for the fourth quarter is $1.71 per share, up from $1.68 90 days ago. When analyst increase earnings estimates investors can assume business has been stronger than first thought and is an encouraging sign for investors. In the last thirty days, the average estimate for the fiscal year has moved up from $7.23 per share to $7.25.
by
Investopedia Staff
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