Security and aerospace company Northrop Grumman (NYSE:NOC) will be reporting results this Tuesday before market open. Here’s what investors should know.
Northrop Grumman missed analysts’ revenue expectations by 2.7% last quarter, reporting revenues of $10.42 billion, up 4.3% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but a significant miss of analysts’ revenue estimates.
Is Northrop Grumman a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Northrop Grumman’s revenue to grow 8.9% year on year to $11.63 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $6.96 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Northrop Grumman has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Northrop Grumman’s peers in the aerospace and defense segment, some have already reported their Q4 results, giving us a hint as to what we can expect. CACI delivered year-on-year revenue growth of 5.7%, missing analysts’ expectations by 2.4%, and AAR reported revenues up 15.9%, topping estimates by 4.4%. CACI traded up 3.6% following the results while AAR was also up 2.1%.
Read our full analysis of CACI’s results here and AAR’s results here.
There has been positive sentiment among investors in the aerospace and defense segment, with share prices up 9.2% on average over the last month. Northrop Grumman is up 16.3% during the same time and is heading into earnings with an average analyst price target of $680.44 (compared to the current share price of $672.49).
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