Categories Earnings, Industrials, LATEST, Technology

Northrop Grumman Q4 results beat; stock slips on weak guidance

During the quarter, adjusted net profit jumped to $851 million or $4.93 per share from $266 million or $1.52 per share in the year-ago quarter, and exceeded Wall Street estimates. Reported earnings, which includes costs related to pension and other postretirement benefits, were $2.06 per share, down 46% from $3.83 per share recorded in the fourth quarter of 2017.

Contributing to the top-line growth, sales of Aerospace Systems and Mission Systems rose 6% and 2% respectively

The earnings growth was driven by a 24% growth in sales to $8.16 billion, which also came in above the market’s expectations. Contributing to the top-line growth, sales of Aerospace Systems and Mission Systems rose 6% and 2% respectively, which was partially offset by an 8% decline in Technology Services.

The year-over-year improvement is also attributable to contributions from Orbital ATK, which was acquired by the company last year and renamed as Innovation Systems.

Looking ahead, the management expects full-year 2019 adjusted earnings in the range of $18.50 per share to $19.00 per share and free cash flow between $2.6 billion and $3.0 billion. Sales are expected to be about $34 billion. Analysts, however, look for better full-year numbers, especially in the wake of the federal government proposing a hike in defense spending.

Kathy Warden, CEO of Northrop, said, “Our fourth quarter and full year financial results, along with our 2019 outlook, demonstrate that we are on a solid growth trajectory. I’m confident we are well positioned to deliver innovative and affordable solutions, with an enhanced degree of agility to create value for our customers and shareholders.”

Also see: Northrop Grumman Q4 2018 Earnings Conference Call Transcript

Rival defense contractor Lockheed Martin (LMT) recovered from a loss in the December quarter and reported earnings of $4.39 per share. Net sales rose 4.1% to $14.4 billion and surpassed estimates.

After hitting a record high nearly a year ago, Northrop shares remained in a downward spiral throughout 2018. The stock had a positive start to 2019 and recouped some of the recent losses. It traded lower during Thursday’s session.

Get access to timely and accurate verbatim transcripts that are published within hours of the event

Most Popular

United Parcel Service (UPS) seems on track to regain lost strength

Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic

IPO Alert: What to look for when Boundless Bio goes public

Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.

Nike (NKE) bets on innovation and partnerships to return to high growth

Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top