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Earnings To Watch: Northrop Grumman (NOC) Reports Q3 Results Tomorrow

NOC Cover Image

Security and aerospace company Northrop Grumman (NYSE:NOC) will be reporting results tomorrow morning. Here’s what to look for.

Northrop Grumman beat analysts’ revenue expectations by 2% last quarter, reporting revenues of $10.22 billion, up 6.7% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ operating margin estimates and a solid beat of analysts’ organic revenue estimates.

Is Northrop Grumman a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Northrop Grumman’s revenue to grow 4% year on year to $10.17 billion, slowing from the 9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $6.07 per share.

Northrop Grumman Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Northrop Grumman has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2% on average.

Looking at Northrop Grumman’s peers in the aerospace and defense segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Lockheed Martin delivered year-on-year revenue growth of 1.3%, missing analysts’ expectations by 1.5%, and RTX reported revenues up 49.2%, topping estimates by 1.4%.

Read our full analysis of Lockheed Martin’s results here and RTX’s results here.

Investors in the aerospace and defense segment have had steady hands going into earnings, with share prices flat over the last month. Northrop Grumman is down 1.6% during the same time and is heading into earnings with an average analyst price target of $538.52 (compared to the current share price of $521.21).

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