Earnings report: Northrop Grumman Corp. (NOC), third quarter
THE TAKE: Defense contractor Northrop Grumman Corp. reported an 11.7 percent drop in third-quarter profits, but beat analysts’ expectations and upped its earnings forecast for the year. The drop in earnings was primarily due to a $66 million decrease in net pension income during the quarter and lower revenue. Revenues in the company’s Aerospace unit increased 5 percent during the quarter because of increased demand for unmanned drones. Revenue declined in its Electronic Systems, Information Services and Technical Services segments.
Revenue: $6.3 billion, down 5.2 percent from $6.6 billion in the third quarter of 2011
Net income: $459 million, down 11.7 percent from $520 million the year before
Diluted earnings per share: $1.82 per share, down from $1.86 per share. (The company had a 10 percent decrease in shares between the third quarters of 2012 and 2011.)
Change in guidance: Expects earnings per share of between $7.35 and $7.40 per share, compared with previous estimates of $7.05 to $7.25.
THE COMPANY’S TAKE: “Our focus on performance, effective cash deployment and portfolio alignment continues to create value for our shareholders, customers and employees. We are working closely with our customers to bring innovative, affordable solutions to support their needs in today’s fiscally constrained environment,“ Wes Bush, chairman, CEO and president, said in a statement.
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