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Investing.com -- Northrop Grumman (NYSE:NOC) saw its shares slide nearly 9% in Tuesday premarket after the U.S. aerospace and defense firm slashed its annual profit outlook and missed first-quarter earnings estimates by a wide margin.
The company reported Q1 earnings per share (EPS) of $3.32, sharply below the year-ago figure of $6.32 and a far cry from the $6.26 consensus estimate.
Revenue for the period declined 6.6% year-over-year to $9.47 billion, also missing the $9.95 billion forecast.
Operating income dropped 46% to $573 million, compared to an estimate of $1.08 billion.
Free cash flow was -$1.82 billion, significantly wider than the expected -$599.3 million.
“Global demand for our products remains strong, which is reflected in our record first quarter backlog, and we are making significant progress on our key programs,” said Kathy Warden, chair, CEO, and president of Northrop Grumman.
For the full year, the company cut its adjusted EPS guidance to a range of $24.95 to $25.35, down from the previous outlook of $27.85 to $28.25, and markedly missing the consensus estimate of $42.32 billion.
Northrop maintained its sales forecast of $42.00 billion to $42.50 billion, compared with the $42.32 billion expected by analysts.