Security and aerospace company Northrop Grumman (NYSE: NOC) will be announcing earnings results this Tuesday before the bell. Here’s what investors should know.
Northrop Grumman beat analysts’ revenue expectations last quarter, reporting revenues of $9.88 billion, up 4.4% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ organic revenue estimates but full-year EPS guidance slightly missing analysts’ expectations.
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 4.5% year on year, improving from the 1.3% increase 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 will 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, only Byrna has reported results so far. It missed analysts’ revenue estimates, posting year-on-year sales declines of 42.5%. The stock was down 34.9% on the results.
Read our full analysis of Byrna’s earnings results here.In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the aerospace and defense stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.9% on average over the last month. Northrop Grumman is up 3.2% during the same time and is heading into earnings with an average analyst price target of $670.48 (compared to the current share price of $523.71).
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