Security and aerospace company Northrop Grumman (NYSE:NOC) will be reporting results this Tuesday morning. Here’s what to expect.
Northrop Grumman beat analysts’ revenue expectations last quarter, reporting revenues of $10.88 billion, up 5.1% year on year. It was a very strong quarter for the company, with full-year EPS guidance exceeding analysts’ expectations 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 for active Edge members.
This quarter, the market is expecting Northrop Grumman’s revenue to grow 7.1% year on year, improving from the 4.3% 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, some have already reported their Q3 results, giving us a hint as to what we can expect. AAR delivered year-on-year revenue growth of 24.1%, beating analysts’ expectations by 4.3%, and Byrna reported a revenue decline of 45.7%, falling short of estimates by 5.3%. AAR traded down 7.2% following the results while Byrna was up 11.6%.
Read our full analysis of AAR’s results here and Byrna’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the 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 5.7% on average over the last month. Northrop Grumman is down 2.1% during the same time and is heading into earnings with an average analyst price target of $619.08 (compared to the current share price of $515.63).
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