Defense contractor Northrop Grumman Corporation ( NOC
The Los Angeles-based company reported second quarter net income of $711 million, or $2.34 per share, compared with $368 million, or $1.21 per share, in the year-ago period. Excluding one-time items, adjusted profit was $2.44 per share.
On average, Wall Street analysts expected a smaller profit of $2.04 per share.
Meanwhile, sales rose 3.5% from last year, to $8.8 billion.
Looking ahead, the company boosted its full-year earnings forecast to a range of $6.60 to $6.80 per share, up from a prior view of $5.75 to $6 per share.
Northrop Grumman shares rose 91 cents, or +1.6%, in premarket trading Thursday.
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 3.22%, based on last night's closing stock price of $58.39. The stock has technical support in the $54-$55 price area. If the shares can firm up, we see overhead resistance around the $62-$63 price levels. We would remain on the sidelines for now.
Northrop Grumman Corporation ( NOC ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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