Northrop Grumman (NOC) Earnings Expected to Grow: What to Know Ahead of Next Week's Release

Core Viewpoint - Northrop Grumman (NOC) is expected to report a year-over-year increase in earnings despite lower revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - The consensus estimate for Northrop Grumman's quarterly earnings is $6.70 per share, reflecting a year-over-year increase of +5.4% [3]. - Revenues are projected to be $10.11 billion, which is a decrease of 1.1% compared to the same quarter last year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 0.56%, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Northrop Grumman is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +3.10% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. - Northrop Grumman currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat despite the positive Earnings ESP [12]. Historical Performance - In the last reported quarter, Northrop Grumman was expected to post earnings of $6.21 per share but delivered $6.06, resulting in a surprise of -2.42% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Conclusion - While Northrop Grumman may not be a compelling earnings-beat candidate, investors should consider other factors when making investment decisions ahead of the earnings release [17].