Defense contractor Northrop Grumman Corporation (
) said Wednesday that its first quarter profit surged 21% from last
year, and the company slightly raised its full-year forecast.
The Los Angeles-based company, which announced last week it
would soon move its operations to Virginia, posted first quarter
net income of $469 million, or $1.53 per share, compared with $389
million, or $1.17 per share, in the year-ago period.
Sales jumped 8.5% from last year, to $8.61 billion.
On average, Wall Street analysts expected a much smaller profit
of $1.32 per share, on lower revenue of $8.07 billion.
Looking ahead, the company raised its full-year earnings
forecast by 5 cents per share. It now expects 2010 EPS of $5.75 to
$6.00 per share, up from a prior outlook of $5.70 to $5.95.
Northrop Grumman shares rose $1.78, or +2.7%, in premarket
The Bottom Line
We have avoided shares of NOC since our early June 2008 coverage
began, when the stock was trading at $71.70. The company has a
dividend yield of 2.56%, based on last night's closing stock price
of $67.18. The stock has technical support in the $63-$65 price
area. If the shares can firm up, we see overhead resistance around
the $70-$72 price levels. We would remain on the sidelines for
Northrop Grumman Corporation (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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