Northrop Grumman (NOC) Earnings Looms Large – Street Expects Static Sales

Northrop Grumman Corporation (NYSE: NOC) prepares to unveil earnings before the market opens tomorrow morning, with the stock moving ever closer to resistance. The firm’s performance will not only be watched by its own shareholders but also offers by those in the sector looking for clues, particularly with Lockheed Martin and RTX slated to release their results this week.

The consensus among analysts points to an anticipated earnings per share (EPS) of $6.68 for the quarter, a 5.8% increase from the $6.36 per share reported during the same period last year. The pressure is on for Northrop Grumman to deliver, particularly after its previous quarter’s performance, where the company reported an EPS of $6.06, falling short of the consensus estimate of $6.33 by $0.27.

Revenue for the period is expected to come in at $10.15 billion, a 0.6% decline in sales from the same period Y/Y.

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The broader market context adds further intrigue to this earnings season. GE Aerospace’s recent earnings beat and upward revision of its current and long-term outlooks have injected a dose of optimism into the industrial sector, potentially setting a higher bar for defense companies like Northrop Grumman.

If the company can bring the quarter and outlook in strong, it could well see NOC ride this wave of positive sentiment. Any sign of weakness could be magnified against the backdrop of peer success.

The average price target on the street of $546.65 reflects a perceived upside of a few percent from here, although we may see shifts as the latest set of numbers come through. Outlook, and executive commentary will be worth picking through for clues, markets will do just that before making their next move.