Northrop Grumman Co. (NOC) to Post FY2019 Earnings of $20.65 Per Share, Jefferies Financial Group Forecasts

Northrop Grumman Co. (NYSE:NOC) – Stock analysts at Jefferies Financial Group lifted their FY2019 EPS estimates for Northrop Grumman in a note issued to investors on Tuesday, January 8th. Jefferies Financial Group analyst S. Kahyaoglu now forecasts that the aerospace company will earn $20.65 per share for the year, up from their prior estimate of $17.75. Jefferies Financial Group has a “Buy” rating and a $324.00 price objective on the stock. Jefferies Financial Group also issued estimates for Northrop Grumman’s FY2020 earnings at $23.25 EPS.

Several other brokerages have also recently issued reports on NOC. Zacks Investment Research cut shares of Northrop Grumman from a “strong-buy” rating to a “hold” rating in a research report on Friday, October 26th. Cowen reduced their price target on shares of Northrop Grumman from $350.00 to $300.00 and set a “market perform” rating on the stock in a research report on Thursday, December 13th. Morgan Stanley reduced their price target on shares of Northrop Grumman from $346.00 to $318.00 and set an “equal weight” rating on the stock in a research report on Wednesday, November 14th. ValuEngine raised shares of Northrop Grumman from a “sell” rating to a “hold” rating in a research report on Tuesday, December 11th. Finally, Wells Fargo & Co reduced their price target on shares of Northrop Grumman from $360.00 to $340.00 and set an “outperform” rating on the stock in a research report on Thursday, October 25th. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating, ten have assigned a buy rating and one has issued a strong buy rating to the company’s stock. The stock has an average rating of “Buy” and an average price target of $343.16.

NYSE NOC opened at $256.05 on Thursday. Northrop Grumman has a 12 month low of $223.63 and a 12 month high of $360.88. The company has a debt-to-equity ratio of 1.53, a quick ratio of 1.17 and a current ratio of 1.26. The stock has a market capitalization of $43.78 billion, a price-to-earnings ratio of 19.28, a P/E/G ratio of 1.19 and a beta of 0.81.

Northrop Grumman (NYSE:NOC) last posted its earnings results on Wednesday, October 24th. The aerospace company reported $6.54 EPS for the quarter, beating the Zacks’ consensus estimate of $4.35 by $2.19. Northrop Grumman had a net margin of 9.62% and a return on equity of 38.27%. The company had revenue of $8.09 billion for the quarter, compared to analysts’ expectations of $7.99 billion. During the same quarter in the prior year, the company posted $3.67 earnings per share. Northrop Grumman’s revenue for the quarter was up 23.1% compared to the same quarter last year.

The company also recently announced a quarterly dividend, which was paid on Wednesday, December 19th. Investors of record on Monday, December 3rd were issued a $1.20 dividend. The ex-dividend date was Friday, November 30th. This represents a $4.80 annualized dividend and a yield of 1.87%. Northrop Grumman’s dividend payout ratio (DPR) is 36.14%.

Northrop Grumman declared that its Board of Directors has approved a stock buyback plan on Tuesday, December 4th that authorizes the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization authorizes the aerospace company to repurchase up to 6.9% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its stock is undervalued.

In related news, VP Shawn N. Purvis sold 1,565 shares of the firm’s stock in a transaction that occurred on Monday, October 29th. The shares were sold at an average price of $273.39, for a total value of $427,855.35. Following the sale, the vice president now owns 4,326 shares of the company’s stock, valued at $1,182,685.14. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Chairman Wesley G. Bush sold 10,000 shares of the firm’s stock in a transaction that occurred on Friday, November 2nd. The shares were sold at an average price of $274.73, for a total transaction of $2,747,300.00. Following the completion of the sale, the chairman now directly owns 9,600 shares in the company, valued at approximately $2,637,408. The disclosure for this sale can be found here. In the last ninety days, insiders sold 16,530 shares of company stock worth $4,588,557. 0.62% of the stock is owned by corporate insiders.

A number of large investors have recently modified their holdings of NOC. Paradigm Asset Management Co. LLC increased its stake in Northrop Grumman by 15.0% in the third quarter. Paradigm Asset Management Co. LLC now owns 8,050 shares of the aerospace company’s stock valued at $2,555,000 after purchasing an additional 1,050 shares during the last quarter. Waddell & Reed Financial Inc. increased its stake in Northrop Grumman by 13.1% in the second quarter. Waddell & Reed Financial Inc. now owns 668,613 shares of the aerospace company’s stock valued at $205,732,000 after purchasing an additional 77,611 shares during the last quarter. California Public Employees Retirement System increased its stake in Northrop Grumman by 21.9% in the second quarter. California Public Employees Retirement System now owns 482,808 shares of the aerospace company’s stock valued at $148,560,000 after purchasing an additional 86,735 shares during the last quarter. Richard Bernstein Advisors LLC increased its stake in Northrop Grumman by 97.0% in the third quarter. Richard Bernstein Advisors LLC now owns 25,591 shares of the aerospace company’s stock valued at $8,122,000 after purchasing an additional 12,603 shares during the last quarter. Finally, Virtu Financial LLC increased its stake in Northrop Grumman by 165.1% in the third quarter. Virtu Financial LLC now owns 2,471 shares of the aerospace company’s stock valued at $784,000 after purchasing an additional 1,539 shares during the last quarter. 82.79% of the stock is currently owned by hedge funds and other institutional investors.

About Northrop Grumman

Northrop Grumman Corporation operates as a security company for government and commercial customers worldwide. It provides products, systems, and solutions in autonomous systems; cyber; command, control, communications and computers, intelligence, surveillance, and reconnaissance (C4ISR); strike; and logistics and modernization.

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Earnings History and Estimates for Northrop Grumman (NYSE:NOC)

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