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Northrop (NOC) Beats on Earnings in Q1, Hikes '18 EPS View
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Northrop Grumman Corporation (NOC - Free Report) reported first-quarter 2018 earnings of $4.21 per share, beating the Zacks Consensus Estimate of $3.63 by 16%.
Reported earnings went up by 14.1% from $3.69 recorded in the year-ago quarter, on the back of higher year-over-year revenue.
Total Revenues
In first-quarter 2018, Northrop Grumman reported total revenues of $6.74 billion, beating the Zacks Consensus Estimate of $6.58 billion by 2.3%.
Revenues also increased 5.1% from the year-ago figure of $6.41 billion. The revenue upside was primarily driven by increase in Aerospace Systems and Mission Systems sales.
Segmental Details
Aerospace Systems: Segment sales of $3.28 billion increased 9.9% year over year primarily due to higher Manned Aircraft sales.
Moreover, operating income was up 6% year over year to $341 million while operating margin contracted 40 basis points (bps).
Mission Systems: Segment sales increased 3% to $2.88 billion due to higher volume for Sensors and Processing programs.
Operating income rose 3% to $371 million compared to the prior-year figure while operating margin increased 10 bps to 12.9%.
Technology Services: Sales at the segment fell 4% to $1.14 billion.
Operating income decreased 5% to $122 million along with its operating margin contracting 10 bps to 10.7%.
Operational Update
Total operating cost and expenses in the first quarter of 2018 amounted to $5.88 billion, an increase of 6% from the previous year’s figure.
Operating income for the first quarter of 2018 dipped 0.9% year over year, to $0.85 billion.
Financial Condition
Northrop Grumman’s cash and cash equivalents as of Mar 31, 2018 were $10.37 billion, down from $11.23 billion as of Dec 31, 2017.
Long-term debt (net of current portion) as of Mar 31, 2018, was $14.39 billion, in line with the long-term debt at 2017 end.
Net cash used in operating activities at the end of Mar 31, 2018 was $0.24 billion compared with the year-ago figure of $0.44 billion.
What’s Ahead?
Northrop Grumman continues to expect to generate total revenues in excess of $27 billion in 2018. The company also kept its free cash flow expectation in the range of $2-$2.3 billion in 2018. The 2018 earnings are now expected to be in the range of $15.40 to $15.65 per share, up from $15.00 to $15.25 per share.
Northrop Grumman Corporation Price, Consensus and EPS Surprise
The Boeing Company (BA - Free Report) reported adjusted earnings of $3.64 per share for first-quarter 2018, beating the Zacks Consensus Estimate of $2.59 by 40.5%. The quarterly bottom line reflected an improvement of 68% from $2.17 in the year-ago quarter.
Lockheed Martin Corp. (LMT - Free Report) reported first-quarter 2018 earnings from continuing operations of $4.02 per share, which surpassed the Zacks Consensus Estimate of $3.35 by 20%. The earnings figure also came in higher than the year-ago figure of $2.69 per share, by 49%.
Textron Inc. (TXT - Free Report) reported first-quarter 2018 earnings from continuing operations of 72 cents per share, which surpassed the Zacks Consensus Estimate of 46 cents by 56.5%. Notably, the bottom line was up 94.6% from 37 cents in the year-ago quarter.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
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Northrop (NOC) Beats on Earnings in Q1, Hikes '18 EPS View
Northrop Grumman Corporation (NOC - Free Report) reported first-quarter 2018 earnings of $4.21 per share, beating the Zacks Consensus Estimate of $3.63 by 16%.
Reported earnings went up by 14.1% from $3.69 recorded in the year-ago quarter, on the back of higher year-over-year revenue.
Total Revenues
In first-quarter 2018, Northrop Grumman reported total revenues of $6.74 billion, beating the Zacks Consensus Estimate of $6.58 billion by 2.3%.
Revenues also increased 5.1% from the year-ago figure of $6.41 billion. The revenue upside was primarily driven by increase in Aerospace Systems and Mission Systems sales.
Segmental Details
Aerospace Systems: Segment sales of $3.28 billion increased 9.9% year over year primarily due to higher Manned Aircraft sales.
Moreover, operating income was up 6% year over year to $341 million while operating margin contracted 40 basis points (bps).
Mission Systems: Segment sales increased 3% to $2.88 billion due to higher volume for Sensors and Processing programs.
Operating income rose 3% to $371 million compared to the prior-year figure while operating margin increased 10 bps to 12.9%.
Technology Services: Sales at the segment fell 4% to $1.14 billion.
Operating income decreased 5% to $122 million along with its operating margin contracting 10 bps to 10.7%.
Operational Update
Total operating cost and expenses in the first quarter of 2018 amounted to $5.88 billion, an increase of 6% from the previous year’s figure.
Operating income for the first quarter of 2018 dipped 0.9% year over year, to $0.85 billion.
Financial Condition
Northrop Grumman’s cash and cash equivalents as of Mar 31, 2018 were $10.37 billion, down from $11.23 billion as of Dec 31, 2017.
Long-term debt (net of current portion) as of Mar 31, 2018, was $14.39 billion, in line with the long-term debt at 2017 end.
Net cash used in operating activities at the end of Mar 31, 2018 was $0.24 billion compared with the year-ago figure of $0.44 billion.
What’s Ahead?
Northrop Grumman continues to expect to generate total revenues in excess of $27 billion in 2018. The company also kept its free cash flow expectation in the range of $2-$2.3 billion in 2018. The 2018 earnings are now expected to be in the range of $15.40 to $15.65 per share, up from $15.00 to $15.25 per share.
Northrop Grumman Corporation Price, Consensus and EPS Surprise
Northrop Grumman Corporation Price, Consensus and EPS Surprise | Northrop Grumman Corporation Quote
Zacks Rank
Northrop Grumman carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Recent Peer Releases
The Boeing Company (BA - Free Report) reported adjusted earnings of $3.64 per share for first-quarter 2018, beating the Zacks Consensus Estimate of $2.59 by 40.5%. The quarterly bottom line reflected an improvement of 68% from $2.17 in the year-ago quarter.
Lockheed Martin Corp. (LMT - Free Report) reported first-quarter 2018 earnings from continuing operations of $4.02 per share, which surpassed the Zacks Consensus Estimate of $3.35 by 20%. The earnings figure also came in higher than the year-ago figure of $2.69 per share, by 49%.
Textron Inc. (TXT - Free Report) reported first-quarter 2018 earnings from continuing operations of 72 cents per share, which surpassed the Zacks Consensus Estimate of 46 cents by 56.5%. Notably, the bottom line was up 94.6% from 37 cents in the year-ago quarter.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>