We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Northrop Grumman Corporation (NOC - Free Report) reported first-quarter 2017 earnings of $3.63 per share, beating the Zacks Consensus Estimate of $2.90 by 25.2%. Reported earnings were also up 20% from $3.03 recorded in the year-ago quarter.
Northrop Grumman Corporation Price, Consensus and EPS Surprise
In the first quarter of 2017, Northrop Grumman reported total revenue of $6.27 billion, beating the Zacks Consensus Estimate of $6.12 billion by 2.5%. Revenues also increased 5.2% from the year-ago figure of $5.96 billion. The revenue upside was driven by a 13% increase in Aerospace systems sales.
Segmental Details
Aerospace Systems: Segment sales of $2.90 billion increased 13% year over year as a result of higher volumes for manned aircraft and increased F-35 deliveries.
Operating income also improved 9% to $312 million, while operating margin contracted 30 basis points (bps) to 11.8%.
MissionSystems: Segment sales increased 2% to $2.74 billion due to higher sales volume for Sensors and Processing systems.
Operating income remained flat at $353 million, while operating margin declined 20 bps to 12.9%.
Technology Services: Sales at the segment dropped 2% to $1.19 billion, driven by lower sales for System Modernization and Services programs and Advanced Defense Services programs.
Operating income increased 4% to $131 million while operating margin improved 60 bps to 11%.
Operational Update
Total operating cost and expenses at the end of the quarter was $5.44 billion, up 4.2%.
Operating income during the quarter also increased 12.6% to $0.8 billion.
Financial Condition
Northrop Grumman’s cash and cash equivalents as of Mar 31, 2017 were $1.40 billion, down from $2.54 billion as of Dec 31, 2016.
Long-term debt (net of current portion) as of Mar 31, 2017, was $7.06 billion, almost same as2016 end.
Net cash outflow from operating activities as of Mar 31, 2016 was $439 million, compared with the year-ago figure of $60 million.
2017 Guidance
Northrop Grumman continues to expect revenues of $25 billion during 2017. On the bottom-line front, the company has raised its outlook. Northrop Grumman now expects to generate earnings in the range of $11.80–$12.10, compared to earlier guidance range of $11.30–$11.60.
Also, the company maintains its free cash flow guidance in the range of $1.8–$2 billion.
Textron Inc. (TXT - Free Report) reported first-quarter 2017 adjusted earnings from continuing operations of 46 cents per share, in line with the Zacks Consensus Estimate. Total revenue in the quarter was $3.09 billion, missing the Zacks Consensus Estimate by 2.6%.
Rockwell Collins Inc. reported financial results for second-quarter fiscal 2017, wherein its adjusted earnings per share of $1.34 surpassed the Zacks Consensus Estimate by 2.3%. Total sales were $1,342 million, which beat the Zacks Consensus Estimate of $1,330 million by 0.9%.
Lockheed Martin Corp. (LMT - Free Report) reported first-quarter 2017 earnings from continuing operations of $3 per share, beating the Zacks Consensus Estimate by 8.7%. However, total revenue of $11.06 billion missed the Zacks Consensus Estimate by 1.8%.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more.
Image: Bigstock
Northrop Grumman (NOC) Tops Q1 Earnings, Hikes EPS View
Northrop Grumman Corporation (NOC - Free Report) reported first-quarter 2017 earnings of $3.63 per share, beating the Zacks Consensus Estimate of $2.90 by 25.2%. Reported earnings were also up 20% from $3.03 recorded in the year-ago quarter.
Northrop Grumman Corporation Price, Consensus and EPS Surprise
Northrop Grumman Corporation Price, Consensus and EPS Surprise | Northrop Grumman Corporation Quote
Total Revenue
In the first quarter of 2017, Northrop Grumman reported total revenue of $6.27 billion, beating the Zacks Consensus Estimate of $6.12 billion by 2.5%. Revenues also increased 5.2% from the year-ago figure of $5.96 billion. The revenue upside was driven by a 13% increase in Aerospace systems sales.
Segmental Details
Aerospace Systems: Segment sales of $2.90 billion increased 13% year over year as a result of higher volumes for manned aircraft and increased F-35 deliveries.
Operating income also improved 9% to $312 million, while operating margin contracted 30 basis points (bps) to 11.8%.
MissionSystems: Segment sales increased 2% to $2.74 billion due to higher sales volume for Sensors and Processing systems.
Operating income remained flat at $353 million, while operating margin declined 20 bps to 12.9%.
Technology Services: Sales at the segment dropped 2% to $1.19 billion, driven by lower sales for System Modernization and Services programs and Advanced Defense Services programs.
Operating income increased 4% to $131 million while operating margin improved 60 bps to 11%.
Operational Update
Total operating cost and expenses at the end of the quarter was $5.44 billion, up 4.2%.
Operating income during the quarter also increased 12.6% to $0.8 billion.
Financial Condition
Northrop Grumman’s cash and cash equivalents as of Mar 31, 2017 were $1.40 billion, down from $2.54 billion as of Dec 31, 2016.
Long-term debt (net of current portion) as of Mar 31, 2017, was $7.06 billion, almost same as2016 end.
Net cash outflow from operating activities as of Mar 31, 2016 was $439 million, compared with the year-ago figure of $60 million.
2017 Guidance
Northrop Grumman continues to expect revenues of $25 billion during 2017. On the bottom-line front, the company has raised its outlook. Northrop Grumman now expects to generate earnings in the range of $11.80–$12.10, compared to earlier guidance range of $11.30–$11.60.
Also, the company maintains its free cash flow guidance in the range of $1.8–$2 billion.
Zacks Rank
Northrop Grumman currently has a Zacks Rank #2 (Buy).You can seethe complete list of today’s Zacks #1 Rank stocks here.
Recent Peer Releases
Textron Inc. (TXT - Free Report) reported first-quarter 2017 adjusted earnings from continuing operations of 46 cents per share, in line with the Zacks Consensus Estimate. Total revenue in the quarter was $3.09 billion, missing the Zacks Consensus Estimate by 2.6%.
Rockwell Collins Inc. reported financial results for second-quarter fiscal 2017, wherein its adjusted earnings per share of $1.34 surpassed the Zacks Consensus Estimate by 2.3%. Total sales were $1,342 million, which beat the Zacks Consensus Estimate of $1,330 million by 0.9%.
Lockheed Martin Corp. (LMT - Free Report) reported first-quarter 2017 earnings from continuing operations of $3 per share, beating the Zacks Consensus Estimate by 8.7%. However, total revenue of $11.06 billion missed the Zacks Consensus Estimate by 1.8%.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more.
Click here for a peek at this private information >>