Northrop Grumman (NOC) Q4 Earnings Beat, Revenues Up Y/Y
Zacks Investment Research | Jan 29, 2020 10:13PM ET
Northrop Grumman Corporation (NYSE:NOC) reported fourth-quarter 2019 earnings of $5.61 per share, beating the Zacks Consensus Estimate of $4.78 by 17.4%. Reported earnings also improved 13.8% from $4.93 in the year-ago quarter.
For 2019, earnings were $21.21 per share, down 0.56% from the year-ago quarter. However, 2019 earnings exceeded the Zacks Consensus Estimate of $20.39 by 4%.
Total Revenues
In fourth-quarter 2019, Northrop Grumman reported total revenues of $8,721 million, missing the Zacks Consensus Estimate of $8,828 million by 1.2%. However, revenues increased 6.9% from the year-ago quarter’s $8,156 million. The year-over-year upside was primarily driven by a 10% increase in Aerospace systems sales, 9% in Innovation Systems sales and 6% in Mission Systems sales.
In 2019, total revenues increased 12.4% year over year to $33,841 million. Full-year revenues, however, missed the Zacks Consensus Estimate of $33,960 million by a mere 0.35%.
Segmental Details
Aerospace Systems: Segment sales of $3,518 million grew 10% year over year as a result of higher volumes of manned aircraft, autonomous systems and space programs.
Operating income rose 9% to $367 million, whereas operating margin contracted 10 basis points (bps) to 10.5%.
Mission Systems: Segment sales increased 6% to $3,220 million owing to higher sales volume of Advanced Capabilities, Cyber, ISR, and Sensors and Processing systems.
Operating income rose 13% to $450 million, with the operating margin expanding 90 bps to 14%.
Technology Services: Sales at this segment dropped 4% to $1,022 million, primarily due to lower Global Logistics and Modernization sales.
Operating income declined 8% to $106 million, with the operating margin contracting 40 bps to 10.4%.
Innovation Systems: Innovation Systems’ fourth-quarter 2019 proforma sales increased 9% to $1,599 million from $1,461 million proforma sales in the fourth quarter of 2018. The increase was owing to higher volumes for Space Systems, Flight Systems and Defense Systems.
The segments’ operating income totaled $171 million and the operating margin expanded 90 bps to 10.7%.
Northrop Grumman Corporation Price, Consensus and EPS Surprise
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