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Northrop Grumman blows past estimates for second quarter, raises guidance

Defense contractor Northrop Grumman Corp. (NOC) blew past earnings estimates for the second quarter on Thursday, and raised its full-year guidance. The Falls Church, Va.-based company posted net income of $1.04 billion, or $6.42 a share, for the second quarter, up from $1.01 billion, or $6.01 a share, in the year-earlier period. Sales rose 3% to $9.2 billion from $8.9 billion. The FactSet consensus was for EPS of $5.84 and sales of $8.8 billion. "Based on the strength of our growth and performance year-to-date and our enhanced outlook for the year, we have increased our 2021 sales and EPS guidance," Chief Executive Kathy Warden said in a statement. Aeronautics systems sales edged down to $2.913 billion from $2.925 billion, while defense systems sales fell to $1.427 billion from $1.886 billion. Mission systems sales rose 6% to $2.588 billion from $2.446 billion and space systems sales rose 34% to $2.748 billion. The company is now expecting full-year transaction adjusted EPS of $24.40 to $24.80, up from prior guidance of $24.00 to $24.50. The transaction referred to is the sale of the company's IT services business in the first half. It expects sales to range from $35.8 billion to $36.2 billion, up from prior guidance of $35.3 billion to $35.7 billion. Shares were slightly lower premarket, but have gained 18% in the year to date, while the S&P 500 has gained 17%.

-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com

 

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07-29-21 0720ET

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