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Will Segmental Performance Aid Northrop's (NOC) Q4 Earnings?
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Northrop Grumman Corporation (NOC - Free Report) is scheduled to report its fourth-quarter and full-year 2022 results on Jan 26, before market open.
Northrop has a four-quarter earnings surprise of 0.15%, on average. The strong revenue performance across most of its segments is likely to contribute to the company’s overall results in the soon-to-be-reported quarter.
Favorable Aeronautics Systems Sales
Increased service sales, particularly from restricted programs, as well as higher volumes in manned aircraft and autonomous systems might have boosted the fourth-quarter revenue performance of the Aeronautics Systems segment.
The Zacks Consensus Estimate for Aeronautics Systems’ fourth-quarter revenues is pegged at $2,760 million, indicating an improvement of 4.9% from the year-ago quarter’s reported revenues.
Northrop Grumman Corporation Price and EPS Surprise
Northrop’s Mission Systems segment is expected to reflect the positive impact of an increased restricted sales in the Networked Information Solutions business area and higher volumes on the Surface Electronic Warfare Improvement Program. These must have boosted the segment’s sales performance in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for Mission System’s fourth-quarter revenues is pegged at $2,884 million, indicating a rise of 14.4% from the year-ago quarter’s reported revenues.
Space Systems – Another Key Contributor
Revenues from the Space System business unit are expected to have gained from higher sales in the Launch & Strategic Missiles and Space business areas, driven by a ramp-up in development programs. This must have boosted the segment’s revenues in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for Space System’s fourth-quarter revenues is pegged at $3,040 million, indicating an increase of 14.4% from the year-ago quarter’s reported revenues.
Fourth-Quarter Estimates
With the majority of NOC’s segments likely to report an improvement in sales, one can be optimistic about the company’s top line in the soon-to-be-reported quarter. The Zacks Consensus Estimate for its fourth-quarter sales is pegged at $9.66 billion, indicating an increase of 11.8% from the prior-year reported figure.
Such a strong topline performance is likely to have had contributed favorably to the company’s fourth-quarter bottom line. This, along with an anticipated federal tax rate benefit, is likely to have bolstered NOC’s Q4 earnings.
The Zacks Consensus Estimate for its fourth-quarter earnings is pegged at $6.60 per share, indicating an increase of 10% from the prior-year reported figure.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Northrop this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is also the case here.
Northrop has an Earnings ESP of +0.12% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Below are three defense stocks that have the right combination for an earnings beat:
SPR delivered a four-quarter average negative earnings surprise of 73.24%. The Zacks Consensus Estimate for Spirit AeroSystem’s fourth-quarter bottom line is pegged at a loss of 48 cents per share, which implies a solid improvement from a loss of 84 cents per share incurred in the fourth quarter of 2021.
Leidos Holdings (LDOS - Free Report) : It is scheduled to release its fourth-quarter results on Feb 14. LDOS has an Earnings ESP of +1.19% and a Zacks Rank #3.
LDOS delivered a four-quarter average earnings surprise of 2.01%. The Zacks Consensus Estimate for Leidos’ fourth-quarter earnings, pegged at $1.61 per share, suggests an improvement of 3.2% from the fourth quarter of 2021.
Airbus Group (EADSY - Free Report) is slated to report its fourth-quarter results soon. EADSY has an Earnings ESP of +6.25% and a Zacks Rank #2.
EADSY delivered a four-quarter average earnings surprise of 59.88%. The Zacks Consensus Estimate for EADSY’s fourth-quarter earnings, pegged at 48 cents per share, implies a decline of 15.8% from the fourth quarter of 2021.
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Will Segmental Performance Aid Northrop's (NOC) Q4 Earnings?
Northrop Grumman Corporation (NOC - Free Report) is scheduled to report its fourth-quarter and full-year 2022 results on Jan 26, before market open.
Northrop has a four-quarter earnings surprise of 0.15%, on average. The strong revenue performance across most of its segments is likely to contribute to the company’s overall results in the soon-to-be-reported quarter.
Favorable Aeronautics Systems Sales
Increased service sales, particularly from restricted programs, as well as higher volumes in manned aircraft and autonomous systems might have boosted the fourth-quarter revenue performance of the Aeronautics Systems segment.
The Zacks Consensus Estimate for Aeronautics Systems’ fourth-quarter revenues is pegged at $2,760 million, indicating an improvement of 4.9% from the year-ago quarter’s reported revenues.
Northrop Grumman Corporation Price and EPS Surprise
Northrop Grumman Corporation price-eps-surprise | Northrop Grumman Corporation Quote
Mission Systems to Boost Top Line
Northrop’s Mission Systems segment is expected to reflect the positive impact of an increased restricted sales in the Networked Information Solutions business area and higher volumes on the Surface Electronic Warfare Improvement Program. These must have boosted the segment’s sales performance in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for Mission System’s fourth-quarter revenues is pegged at $2,884 million, indicating a rise of 14.4% from the year-ago quarter’s reported revenues.
Space Systems – Another Key Contributor
Revenues from the Space System business unit are expected to have gained from higher sales in the Launch & Strategic Missiles and Space business areas, driven by a ramp-up in development programs. This must have boosted the segment’s revenues in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for Space System’s fourth-quarter revenues is pegged at $3,040 million, indicating an increase of 14.4% from the year-ago quarter’s reported revenues.
Fourth-Quarter Estimates
With the majority of NOC’s segments likely to report an improvement in sales, one can be optimistic about the company’s top line in the soon-to-be-reported quarter. The Zacks Consensus Estimate for its fourth-quarter sales is pegged at $9.66 billion, indicating an increase of 11.8% from the prior-year reported figure.
Such a strong topline performance is likely to have had contributed favorably to the company’s fourth-quarter bottom line. This, along with an anticipated federal tax rate benefit, is likely to have bolstered NOC’s Q4 earnings.
The Zacks Consensus Estimate for its fourth-quarter earnings is pegged at $6.60 per share, indicating an increase of 10% from the prior-year reported figure.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Northrop this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is also the case here.
Northrop has an Earnings ESP of +0.12% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Below are three defense stocks that have the right combination for an earnings beat:
Spirit AeroSystems (SPR - Free Report) : It is scheduled to release its fourth-quarter results soon. SPR has an Earnings ESP of +93.75% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
SPR delivered a four-quarter average negative earnings surprise of 73.24%. The Zacks Consensus Estimate for Spirit AeroSystem’s fourth-quarter bottom line is pegged at a loss of 48 cents per share, which implies a solid improvement from a loss of 84 cents per share incurred in the fourth quarter of 2021.
Leidos Holdings (LDOS - Free Report) : It is scheduled to release its fourth-quarter results on Feb 14. LDOS has an Earnings ESP of +1.19% and a Zacks Rank #3.
LDOS delivered a four-quarter average earnings surprise of 2.01%. The Zacks Consensus Estimate for Leidos’ fourth-quarter earnings, pegged at $1.61 per share, suggests an improvement of 3.2% from the fourth quarter of 2021.
Airbus Group (EADSY - Free Report) is slated to report its fourth-quarter results soon. EADSY has an Earnings ESP of +6.25% and a Zacks Rank #2.
EADSY delivered a four-quarter average earnings surprise of 59.88%. The Zacks Consensus Estimate for EADSY’s fourth-quarter earnings, pegged at 48 cents per share, implies a decline of 15.8% from the fourth quarter of 2021.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.