Northrop Grumman Q1 Results Beat Estimates; Lifts FY16 EPS View Above Market

(RTTNews) - Security company Northrop Grumman Corp. (NOC) reported Wednesday that its first-quarter net earnings increased 15 percent to $556 million from $484 million a year ago.

Earnings per share increased 26 percent to $3.03 from $2.41 a year ago. Pension-adjusted earnings per share were $2.77, compared to $2.14 last year.

On average, 18 analysts polled by Thomson Reuters expected earnings of $2.49 per share. Analysts' estimates typically exclude special items.

In the first quarter of 2016 the company adopted an accounting standard update regarding treatment of share-based compensation, which resulted in a tax benefit of $80 million, or $0.44 per share.

Quarterly sales edged down to $5.956 billion from $5.957 billion last year. Analysts were looking for sales of $5.93 billion.

Further, the company lifted its fiscal 2016 earnings per share forecast to $10.40 to $10.70 from previous estimate of $9.90 to $10.20 per share.

The company continues to expect annual sales between $23.5 billion and $24 billion.

Analysts expect earnings of $10.23 per share on sales of $23.88 billion for the year.