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July 30, 2020, 6:47 a.m. EDT

Northrop beats profit and sales estimates and raises guidance

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By Ciara Linnane

Northrop Grumman Corp. /zigman2/quotes/205518355/composite NOC -0.68% posted better-than-expected earnings for the second quarter, as profit and sales rose during the pandemic, and the company raised its full-year guidance. The Falls Church, Va.-based defense contractor said it had net income of $1.0 billion, or $6.01 a share, in the quarter, up from $861 million, or $5.06 a share, in the year-earlier period. The number includes $38 million, or 23 cents a share, of favorable returns on marketable securities related to non-qualified benefit plans and other non-operating assets. Sales rose 5% to $8.9 billion from $8.5 billion. The FactSet consensus was for EPS of $5.32 and sales of $8.6 billion. Sales at the company's aeronautics systems division rose 7% to $2.925 billion; sales at defense systems fell 2% to $1.886 billion; mission systems sales rose 2% o $2.446 billion; and space systems sales rose 15% to $2.048 billion. The company ended the quarter with a backlog of $70 billion. Looking ahead, Northrop is now expecting full-year sales to range from $35.3 billion to $35.6 billion, up from its April guidance of 35.0 billion to $35.4 billion. It expects free cash flow to range from $3.150 billion to $3.550 billion, up from prior guidance of $3.150 billion to $3.450 billion. Shares were up 1.5% premarket, but have fallen 8.4% in the year to date, while the S&P 500 /zigman2/quotes/210599714/realtime SPX -1.12% has gained 0.9%.

$ 341.50
-2.34 -0.68%
Volume: 689,911
Sept. 18, 2020 4:00p
P/E Ratio
Dividend Yield
Market Cap
$56.93 billion
Rev. per Employee
-37.54 -1.12%
Volume: 4.09B
Sept. 18, 2020 5:15p

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