Northrop Grumman Earnings: What To Look For From NOC

Northrop Grumman Earnings: What To Look For From NOC

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

Northrop Grumman beat analysts' revenue expectations by 3.8% last quarter, reporting revenues of $10.13 billion, up 8.9% year on year. It was a stunning quarter for the company, with an impressive beat of analysts' organic revenue estimates and a decent beat of analysts' earnings 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 4.6% year on year to $10.02 billion, slowing from the 8.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $5.93 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 missed Wall Street's revenue estimates twice over the last two years.

Looking at Northrop Grumman's peers in the aerospace and defense segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Lockheed Martin delivered year-on-year revenue growth of 8.6%, beating analysts' expectations by 6.5%, and Hexcel reported revenues up 10.1%, topping estimates by 3%. Hexcel traded down 7.5% following the results.

Read our full analysis of Lockheed Martin's results here and Hexcel's results here.

There has been positive sentiment among investors in the aerospace and defense segment, with share prices up 8.3% on average over the last month. Northrop Grumman is up 3% during the same time and is heading into earnings with an average analyst price target of $501.3 (compared to the current share price of $441.3).

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