Northrop Grumman Shares Fall On Earnings Miss

Northrop Grumman Corp. reported earnings that came up short of analyst expectations, sending shares lower by 3.2% to $74.17 in trading yesterday. The company did reaffirm its full year guidance, and shares recovered slightly in after-hours trading, gaining $0.42, (0.56%) to $74.59. Northrop pulled in $387 million, good for EPS of $1.10 on sales of $7.34 billion. Consensus estimates, however, were predicting EPS of $1.14 on sales of $7.52 billion. For 2007, Northrop projects sales of $31-$32 billion with EPS from continuing operations of $4.80-$5.05. Consensus analyst forecasts for the full year are for $31.79 billion in sales and $5 a share in earnings. According to the company, a nearly month-long strike at Northrop's Ingalls shipyard in Pascagoula, Mississippi cut EPS by about $0.02.

Sources: Press Release, Reuters, Newsday, TheStreet.com
Commentary: Lockheed, Northrop Face Probe Over Coast Guard Program Cost Overruns • DoD's FY-08 Budget: The Largest in US History • Cramer's Take on NOC
Stocks/ETFs to watch: Northrop Grumman Corporation (NOC). Competitors: Lockheed Martin Corporation (LMT), The Boeing Company (BA), Raytheon Company (RTN), General Dynamics (GD). ETFs: PowerShares Aerospace & Defense (PPA), iShares Dow Jones US Aerospace & Defense (ITA)

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