NOC Stock Rises As Northrop Grumman Rounds Out Defense Earnings.
Defense stocks were mixed early Thursday as Northrop Grumman (NOC) announced quarterly results. General Dynamics (GD) reported above-forecast third-quarter results Wednesday. RTX stock spiked on Tuesday after a Q3 earnings beat.
Rapidly evolving circumstances in Israel and Palestine sparked greater interest in defense companies going into the earnings season.
Northrop Grumman specializes in advanced missiles, missile components, defense systems and sensor technology. The company's various manned aircraft include the A-10 Thunderbolt, B-2 Stealth Bomber, B-21 Raider, F-35 and the F/A-18 Super Hornet.
Northrop's third-quarter earnings rose about 5% to $6.18 per share on 9% revenue growth to $9.78 billion.
We expect Northrop earnings to fall for the first time in three quarters, sliding 1.4% to $5.81 per share. Revenue views targeted a 6.8% rise to $9.58 billion.
The company reported that defense system sales rose 6% to $1.42 billion and mission systems revenue increased 7% to $2.63 billion. Northrop's space systems division reported an 11% revenue increase to $3.5 billion. Aeronautics revenue rose 9% to $2.77 billion.
It lifted its full-year sales guidance to $39 billion, from the previous range of $38.4 billion to $38.8 billion. Northrop maintained its earnings forecast, expecting EPS between $22.45 and $22.85.
Analysts polled by FactSet see full-year earnings of $22.74 on $38.79 billion in revenue.
Northrop is well positioned thanks to its "high priority" long-term growth programs including the B-21 and Sentential Ground Based Strategic Deterrent (GBSD), an intercontinental ballistic missile system, UBS wrote in an Oct. 10 research note. The programs provide greater visibility and should drive overperformance. UBS initiated coverage of NOC stock with a buy rating and $555 price target.
NOC stock gained 0.6% early Thursday, adding to Wednesday's 1% gain. Shares slid below their 10-day moving average early in the week. NOC stock is trading around mid-January levels and down 11.3% this year.
We can see the Trend line in sync with the Relative Strength Index indicating Bullish Trend on Northrop.
Rapidly evolving circumstances in Israel and Palestine sparked greater interest in defense companies going into the earnings season.
Northrop Grumman specializes in advanced missiles, missile components, defense systems and sensor technology. The company's various manned aircraft include the A-10 Thunderbolt, B-2 Stealth Bomber, B-21 Raider, F-35 and the F/A-18 Super Hornet.
Northrop's third-quarter earnings rose about 5% to $6.18 per share on 9% revenue growth to $9.78 billion.
We expect Northrop earnings to fall for the first time in three quarters, sliding 1.4% to $5.81 per share. Revenue views targeted a 6.8% rise to $9.58 billion.
The company reported that defense system sales rose 6% to $1.42 billion and mission systems revenue increased 7% to $2.63 billion. Northrop's space systems division reported an 11% revenue increase to $3.5 billion. Aeronautics revenue rose 9% to $2.77 billion.
It lifted its full-year sales guidance to $39 billion, from the previous range of $38.4 billion to $38.8 billion. Northrop maintained its earnings forecast, expecting EPS between $22.45 and $22.85.
Analysts polled by FactSet see full-year earnings of $22.74 on $38.79 billion in revenue.
Northrop is well positioned thanks to its "high priority" long-term growth programs including the B-21 and Sentential Ground Based Strategic Deterrent (GBSD), an intercontinental ballistic missile system, UBS wrote in an Oct. 10 research note. The programs provide greater visibility and should drive overperformance. UBS initiated coverage of NOC stock with a buy rating and $555 price target.
NOC stock gained 0.6% early Thursday, adding to Wednesday's 1% gain. Shares slid below their 10-day moving average early in the week. NOC stock is trading around mid-January levels and down 11.3% this year.
We can see the Trend line in sync with the Relative Strength Index indicating Bullish Trend on Northrop.
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