Northrop Grumman Corp. (NYSE: NOC), a provider of products, services and integrated solutions in aerospace, electronics, information and services to its global customer, today reported an 8% drop in its net income for the second quarter as sales softened in most business segments. However, NOC’s adjusted earnings beat Street estimates.
Northrop Grumman also raised its earnings outlook for the full year.
For the second quarter of 2012, NOC reported earnings of $480 million, compared to $520 million reported for the same period in 2011. On a per share basis, NOC’s earnings for the quarter were $1.88 per share, compared to $1.81 per share reported for the same period last year. The increase in earnings on a per share basis was due to fewer outstanding shares in the second quarter of 2012.
Excluding one-time items, Northrop Grumman reported earnings of $1.79 per share, beating Street estimates of $1.61 per share.
Revenue for the second quarter ended June 30, 2012 was $6.27 billion, down 4% over the same period in 2011. Despite the drop, second-quarter revenue beat Street estimates of $6.19 billion.
For the full year, NOC now expects earnings to come in between $7.05 per share and $7.25 per share, compared to previous forecast of $6.70-$6.95 per share. The company continues to expect full-year revenue to come in between $24.7 billion and $25.4 billion.
Analysts expect NOC to report 2012 earnings of $6.88 per share and revenue of $25.05 billion.
Despite posting better-than-expected quarterly results, NOC shares are marginally lower in trading today. At last check, NOC shares were down 0.50% to $63.86 on above average volume of 1.46 million. The stock fell to an intra-day low of $63.23.
NOC shares have gained 9.05% so far this year, compared to a gain of 6.75% for the S&P 500.
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