Northrop Grumman (NOC) to Report Q3 Earnings: What's in Store?

Northrop Grumman Corp. NOC is scheduled to release third-quarter 2020 results on Oct 22, before the opening bell.

The company surpassed the Zacks Consensus Estimate in three of the trailing four quarters , the average surprise being 10.08%.

Let's take a closer look at the factors likely to have influenced the company’s performance.

Factors Under Consideration

During the third quarter, in July, Northrop Grumman delivered three of its 63-inch-diameter Graphite Epoxy Motors (GEM 63) for United Launch Alliance’s (ULA) Atlas V rocket. Further, toward the third-quarter-end, it delivered its new MS-177 and upgraded AN/ASQ-230 sensors for the United States Air Force and Geographic Combatant Commands. This is likely to have favorably contributed to the company’s third-quarter revenues.

Q3 Backlog

Northrop Grumman has been witnessing a steady flow of orders from both Pentagon and its foreign allies, courtesy of the demand for its varied range of military offerings. Notably, during the third quarter, it secured a handful of multi-million-dollar contracts. This is expected to get reflected in the company's backlog count for the quarter under review.

Northrop Grumman Corporation Price and EPS Surprise

Northrop Grumman Corporation Price and EPS Surprise

Northrop Grumman Corporation price-eps-surprise | Northrop Grumman Corporation Quote

Q3 Expectations

Notably, the Zacks Consensus Estimate for the company’s third-quarter sales is pegged at $8.84 billion, indicating 4.3% growth from the year-ago quarter’s reported figure.

The Zacks Consensus Estimate for third-quarter earnings is pegged at $5.60 per share, suggesting 2% year-over-year growth.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Northrop Grumman this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Northrop Grumman has an Earnings ESP of +1.23% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Here are some other defense companies you may want to consider, as these too have the right combination of elements to post an earnings beat in their upcoming releases:

Lockheed Martin Corporation LMT has an Earnings ESP of +0.35% and a Zacks Rank #3. The company will announce third-quarter 2020 earnings on Oct 20.

L3Harris Technologies Inc. LHX has an Earnings ESP of +1.23% and a Zacks Rank #2. The company will announce third-quarter 2020 earnings on Oct 30.

Kratos Defense Security Solutions, Inc. KTOS has an Earnings ESP of +33.33% and a Zacks Rank #3. The company is projected to post third-quarter 2020 results soon.

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