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Northrop Grumman (NOC) to Report Q4 Earnings: What's in Store?
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Northrop Grumman Corp. (NOC - Free Report) is scheduled to release fourth-quarter 2020 results on Jan 28, before the opening bell.
In the last reported quarter, the company delivered a positive earnings surprise of 5.18%. The company surpassed the Zacks Consensus Estimate in three of the trailing four quarters, the average surprise being 7.42%.
Let's take a closer look at the factors likely to have influenced the company’s performance.
Factors Under Consideration
In November, Northrop Grumman delivered its fifth NATO Alliance Ground Surveillance (AGS) aircraft to the NATO AGS Force (NAGSF).
Furthermore, the company has been consistently delivering F-35 center fuselage units at a consistent pace over the past few quarters, a trend that is expected to have continued in the fourth quarter as well. Such deliveries are likely to have boosted the company’s fourth-quarter revenues.
Moreover, shortly after the end of the third quarter, the company launched its Cygnus spacecraft in the market. This might have also favorably contributed to Northrop’s operational performance in the soon-to-be-reported quarter.
Q4 Backlog
Northrop Grumman has been witnessing a steady flow of orders from both Pentagon and its foreign allies, courtesy of the demand for its varied range of military offerings. Notably, during the fourth quarter, it secured a handful of multi-million-dollar contracts, including a $4.8-billion deal to upgrade the Global Hawk Program. This is expected to get reflected in the company's backlog count for the quarter under review.
Q4 Expectations
At the end of the third quarter, Northrop Grumman raised its 2020 sales expectation to the range of $35.7-$36 billion, reflecting 6% annual growth at the midpoint. This notably reflects the strength of the year-to-date results and the company’s expectations for a strong fourth quarter.
The Zacks Consensus Estimate for the company’s fourth-quarter sales is pegged at $9.24 billion, indicating 6% growth from the year-ago quarter’s reported figure.
Similarly, Northrop Grumman also raised its earnings per share guidance for 2020, which once again indicates a solid bottom-line performance for the fourth quarter. Notably, the company’s cost-reduction initiatives along with impressive top-line expectations are likely to aid its quarterly earnings.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $5.70 per share, suggesting 1.6% year-over-year growth.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Northrop Grumman this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat but this is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some defense companies you may want to consider, as these have the right combination of elements to post an earnings beat this season:
Triumph Group (TGI - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank #2. The company will announce fourth-quarter 2020 earnings on Feb 3.
Leidos Holdings (LDOS - Free Report) has an Earnings ESP of +6.79% and a Zacks Rank #2. The company will announce fourth-quarter 2020 earnings on Feb 23.
Curtiss-Wright (CW - Free Report) has an Earnings ESP of +1.50% and a Zacks Rank #3. The company will announce fourth-quarter 2020 earnings on Feb 24.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
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Northrop Grumman (NOC) to Report Q4 Earnings: What's in Store?
Northrop Grumman Corp. (NOC - Free Report) is scheduled to release fourth-quarter 2020 results on Jan 28, before the opening bell.
In the last reported quarter, the company delivered a positive earnings surprise of 5.18%. The company surpassed the Zacks Consensus Estimate in three of the trailing four quarters, the average surprise being 7.42%.
Let's take a closer look at the factors likely to have influenced the company’s performance.
Factors Under Consideration
In November, Northrop Grumman delivered its fifth NATO Alliance Ground Surveillance (AGS) aircraft to the NATO AGS Force (NAGSF).
Furthermore, the company has been consistently delivering F-35 center fuselage units at a consistent pace over the past few quarters, a trend that is expected to have continued in the fourth quarter as well. Such deliveries are likely to have boosted the company’s fourth-quarter revenues.
Moreover, shortly after the end of the third quarter, the company launched its Cygnus spacecraft in the market. This might have also favorably contributed to Northrop’s operational performance in the soon-to-be-reported quarter.
Q4 Backlog
Northrop Grumman has been witnessing a steady flow of orders from both Pentagon and its foreign allies, courtesy of the demand for its varied range of military offerings. Notably, during the fourth quarter, it secured a handful of multi-million-dollar contracts, including a $4.8-billion deal to upgrade the Global Hawk Program. This is expected to get reflected in the company's backlog count for the quarter under review.
Q4 Expectations
At the end of the third quarter, Northrop Grumman raised its 2020 sales expectation to the range of $35.7-$36 billion, reflecting 6% annual growth at the midpoint. This notably reflects the strength of the year-to-date results and the company’s expectations for a strong fourth quarter.
The Zacks Consensus Estimate for the company’s fourth-quarter sales is pegged at $9.24 billion, indicating 6% growth from the year-ago quarter’s reported figure.
Similarly, Northrop Grumman also raised its earnings per share guidance for 2020, which once again indicates a solid bottom-line performance for the fourth quarter. Notably, the company’s cost-reduction initiatives along with impressive top-line expectations are likely to aid its quarterly earnings.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $5.70 per share, suggesting 1.6% year-over-year growth.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Northrop Grumman this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat but this is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Northrop Grumman has an Earnings ESP of +0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northrop Grumman Corporation Price and EPS Surprise
Northrop Grumman Corporation price-eps-surprise | Northrop Grumman Corporation Quote
Stocks to Consider
Here are some defense companies you may want to consider, as these have the right combination of elements to post an earnings beat this season:
Triumph Group (TGI - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank #2. The company will announce fourth-quarter 2020 earnings on Feb 3.
Leidos Holdings (LDOS - Free Report) has an Earnings ESP of +6.79% and a Zacks Rank #2. The company will announce fourth-quarter 2020 earnings on Feb 23.
Curtiss-Wright (CW - Free Report) has an Earnings ESP of +1.50% and a Zacks Rank #3. The company will announce fourth-quarter 2020 earnings on Feb 24.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>