Northrop Grumman Co. (NOC) Expected to Post Quarterly Sales of $8.32 Billion

Brokerages expect that Northrop Grumman Co. (NYSE:NOC) will report $8.32 billion in sales for the current quarter, Zacks Investment Research reports. Four analysts have made estimates for Northrop Grumman’s earnings, with estimates ranging from $8.23 billion to $8.38 billion. Northrop Grumman reported sales of $6.74 billion in the same quarter last year, which indicates a positive year-over-year growth rate of 23.4%. The firm is expected to report its next quarterly earnings report on Wednesday, April 24th.

On average, analysts expect that Northrop Grumman will report full-year sales of $34.02 billion for the current fiscal year, with estimates ranging from $33.81 billion to $34.32 billion. For the next year, analysts anticipate that the business will post sales of $35.96 billion, with estimates ranging from $35.63 billion to $36.45 billion. Zacks’ sales calculations are a mean average based on a survey of research firms that follow Northrop Grumman.

Northrop Grumman (NYSE:NOC) last issued its quarterly earnings results on Thursday, January 31st. The aerospace company reported $4.93 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.45 by $0.48. The firm had revenue of $8.16 billion during the quarter, compared to analyst estimates of $8.11 billion. Northrop Grumman had a return on equity of 41.24% and a net margin of 9.73%. During the same period last year, the company posted $2.82 EPS.

NOC has been the subject of several research analyst reports. Citigroup dropped their price target on Northrop Grumman from $350.00 to $333.00 and set a “buy” rating for the company in a research note on Monday, January 14th. Credit Suisse Group reissued a “buy” rating on shares of Northrop Grumman in a research note on Thursday, January 31st. Barclays lowered their target price on shares of Northrop Grumman from $400.00 to $310.00 and set an “overweight” rating for the company in a research note on Tuesday, December 4th. Goldman Sachs Group downgraded shares of Northrop Grumman from a “conviction-buy” rating to a “buy” rating in a research note on Friday, February 1st. Finally, Susquehanna Bancshares initiated coverage on shares of Northrop Grumman in a research note on Thursday, January 10th. They set a “neutral” rating and a $273.00 target price for the company. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating and twelve have assigned a buy rating to the company’s stock. Northrop Grumman currently has an average rating of “Buy” and an average target price of $336.39.

In related news, CAO Michael A. Hardesty sold 259 shares of the company’s stock in a transaction dated Thursday, February 21st. The shares were sold at an average price of $288.38, for a total value of $74,690.42. Following the completion of the sale, the chief accounting officer now directly owns 6,253 shares of the company’s stock, valued at $1,803,240.14. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Chairman Wesley G. Bush sold 86,500 shares of the company’s stock in a transaction dated Wednesday, February 20th. The stock was sold at an average price of $287.28, for a total transaction of $24,849,720.00. Following the completion of the sale, the chairman now directly owns 39,937 shares of the company’s stock, valued at $11,473,101.36. The disclosure for this sale can be found here. Insiders have sold 119,289 shares of company stock valued at $34,274,861 over the last three months. Insiders own 0.62% of the company’s stock.

A number of institutional investors have recently made changes to their positions in NOC. Capital International Investors raised its stake in Northrop Grumman by 67.0% in the 3rd quarter. Capital International Investors now owns 4,525,421 shares of the aerospace company’s stock valued at $1,436,233,000 after purchasing an additional 1,816,321 shares during the last quarter. Capital World Investors increased its holdings in shares of Northrop Grumman by 40.4% in the third quarter. Capital World Investors now owns 4,751,070 shares of the aerospace company’s stock valued at $1,507,847,000 after purchasing an additional 1,367,045 shares during the period. Millennium Management LLC increased its holdings in shares of Northrop Grumman by 198.8% in the fourth quarter. Millennium Management LLC now owns 568,441 shares of the aerospace company’s stock valued at $139,211,000 after purchasing an additional 378,176 shares during the period. Massachusetts Financial Services Co. MA increased its holdings in shares of Northrop Grumman by 7.5% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 5,072,281 shares of the aerospace company’s stock valued at $1,242,203,000 after purchasing an additional 355,364 shares during the period. Finally, Assenagon Asset Management S.A. boosted its stake in shares of Northrop Grumman by 5,821.5% in the fourth quarter. Assenagon Asset Management S.A. now owns 263,566 shares of the aerospace company’s stock valued at $64,547,000 after buying an additional 259,115 shares in the last quarter. Institutional investors and hedge funds own 84.07% of the company’s stock.

Northrop Grumman stock traded down $0.79 during trading on Thursday, hitting $273.32. The company’s stock had a trading volume of 22,250 shares, compared to its average volume of 951,962. The firm has a market capitalization of $46.53 billion, a P/E ratio of 12.81, a PEG ratio of 1.11 and a beta of 0.88. The company has a current ratio of 1.17, a quick ratio of 1.09 and a debt-to-equity ratio of 1.70. Northrop Grumman has a 1-year low of $223.63 and a 1-year high of $360.88.

The business also recently announced a quarterly dividend, which was paid on Wednesday, March 13th. Stockholders of record on Monday, February 25th were paid a dividend of $1.20 per share. This represents a $4.80 dividend on an annualized basis and a dividend yield of 1.76%. The ex-dividend date of this dividend was Friday, February 22nd. Northrop Grumman’s dividend payout ratio is currently 22.50%.

Northrop Grumman announced that its Board of Directors has initiated a share buyback plan on Tuesday, December 4th that authorizes the company to buyback $3.00 billion in shares. This buyback authorization authorizes the aerospace company to purchase up to 6.9% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its shares are undervalued.

About Northrop Grumman

Northrop Grumman Corporation, a security company, provides products in the areas of autonomous systems, cyber, space, strikes, and logistics and modernizations in the United States, the Asia Pacific, and internationally. The company operates through four segments: Aerospace Systems, Innovation Systems, Mission Systems, and Technology Services.

Featured Story: Risk Tolerance

Get a free copy of the Zacks research report on Northrop Grumman (NOC)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Earnings History and Estimates for Northrop Grumman (NYSE:NOC)

Receive News & Ratings for Northrop Grumman Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Northrop Grumman and related companies with MarketBeat.com's FREE daily email newsletter.