On Wednesday defense and security equipment producer Northrop
Grumman Corporation ( NOC ) reported lower
earnings and revenue for the third quarter. The company beat
analysts expectation on adjusted earnings, but missed on
The Falls Church, Virginia based company reported third quarter
net income of $459 million, or $1.82 per share, compared to $520
million, or $1.86 per share, in the third quarter a year ago. NOC
said that the drop in earnings was due to a $66 million decrease in
net pension income for the quarter.
However, on an adjusted basis, EPS went up 6% to $1.73 from
$1.63 per share a year ago. Wall Street analysts polled by Thomson
Reuters expected adjusted earnings per share to be $1.69 for the
Quarterly revenue for Northrop Grumman was $6.27 million, down
-5% from $6.61 billion a year earlier. Analysts expected revenue to
be $6.34 billion.
Looking forward, NOC raised its full-year earnings forecast.
Northrop now expects full-year earnings of between $7.35 and $7.40
per share, up from its prior view of between $7.05 and $7.25 per
NOC shares were flat in premarket trading on Wednesday.
The Bottom Line
Shares of Northrop Grumman ( NOC ) have a 3.16%
dividend yield, based on last night's closing stock price of
$69.66. The stock has technical support in the $64-$66 price area.
If the shares can firm up, we see overhead resistance around the
$73-$74 price levels.
Northrop Grumman Corporation ( NOC ) is not
recommended at this time, holding a Dividend.com DARS™ Rating of
3.4 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well
as a detailed explanation of our ratings system here .