Northrop Grumman Gives Investors Little to Get Excited About in 2020
Northrop Grumman's (NYSE: NOC) arsenal of space, electronics, and aviation assets has made it one of the highest fliers among defense stocksin recent years, and at first glance the company's latest quarterly results give no reason to believe the momentum is slowing.
But a deep dive into the numbers, coupled with tepid guidance for 2020, tell a different story. Here's why shares of Northrop Grumman, despite the strength of the company's portfolio, seem a poor bet to continue to outperform their peers in the quarters to come.
Northrop Grumman on Jan. 30 reported fourth-quarter adjusted earnings of $5.61 per share, easily beating the $4.77 consensus. But revenue came in at $8.7 billion, $250 million shy of analyst expectations, and the earnings beat appears to be driven by corporate items including a favorable resolution of a cost accounting matter. On an operating basis, earnings appear to have missed estimates by at least $0.10 per share on weakness in aerospace systems and technology services.
Source Fool.com
