Defense contractor Northrop Grumman Corporation (
) on Wednesday posted better-than-expected first quarter earnings,
raised its dividend, and boosted its share repurchase plan.
The Los Angeles-based company reported first quarter net income
of $530 million, or $1.79 per share, compared with $469 million, or
$1.53 per share, in the year-ago period. Earnings from continuing
operations were $1.67 per share.
Sales fell 2.6% from last year to $6.73 billion, as the company
spun off some of its operations.
On average, Wall Street analysts expected a smaller profit of
$1.56 per share, albeit on slighlty higher revenue of $6.74
Looking ahead, the company boosted its full-year earnings
outlook to a range of $6.50 to $6.70 per share, up from a prior
range of $6.40 to $6.60.
Northrop also boosted its quarterly dividend payout by 6.4%, to
50 cents per share. That move marked the eighth consecutive annual
dividend increase for the company. It also announced it would buy
back up to $4 billion of its own stock.
Northrop Grumman shares were mostly flat in premarket trading
The Bottom Line
Shares of Northrop Grumman (
) will now have a 3.20% dividend yield, based on the new dividend
payout and last night's closing stock price of $62.49. The stock
has technical support in the $58-$60 price area. If the shares can
firm up, we see overhead resistance around the $66-$68 price
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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