Security and aerospace company Northrop Grumman (NYSE: NOC) will be announcing earnings results this Tuesday before the bell. Here’s what to expect.
Northrop Grumman beat analysts’ revenue expectations last quarter, reporting revenues of $11.71 billion, up 9.6% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates but full-year EPS guidance missing analysts’ expectations significantly.
Is Northrop Grumman a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Northrop Grumman’s revenue to grow 3.1% year on year, a reversal from the 6.6% decrease it recorded in the same quarter last year.
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 multiple times over the last two years.
Looking at Northrop Grumman’s peers in the aerospace and defense segment, some have already reported their Q1 results, giving us a hint as to what we can expect. AAR delivered year-on-year revenue growth of 24.6%, beating analysts’ expectations by 4.1%, and Byrna reported revenues up 10.9%, falling short of estimates by 2.3%. AAR traded up 9.9% following the results while Byrna was down 38.3%.
Read our full analysis of AAR’s results here and Byrna’s results here.
There has been positive sentiment among investors in the aerospace and defense segment, with share prices up 10.3% on average over the last month. Northrop Grumman is down 2% during the same time and is heading into earnings with an average analyst price target of $736.24 (compared to the current share price of $667.53).
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