Northrop Grumman Sees Increase in Space Sales, Beats 4Q 2019 Earnings Estimates
Northrop Grumman’s Innovation Systems division posted a 2019 Fourth Quarter (4Q) sales increase of $138 million to a total of $1.59 billion, a 9% jump from the same period last year, according to the company’s full-year financial results issued January 30.
The Innovation Systems division includes the acquisition of Orbital ATK, which Northrop Grumman acquired in June 2018. Northrop Grumman said the division’s space systems sales increased due to higher volume on national security satellite systems. The division’s operating income increased 20% to $671 million in the fourth quarter due to higher sales and a higher operating margin rate.
Northrop Grumman Corp. (NGC) reported a 7 percent increase in the company’s overall fourth quarter sales compared to the final quarter of 2018. Company-wide sales reached $8.7 billion in the quarter and $33.8 billion for the full year (a 12% increase from 2018). NGC’s 4Q revenue increased 7% to $8.72 billion.
Most defense sector analysts expected a NGC earnings-per-share decrease to fall between the range of $4.70 and $4.80. However, the company beat expectations in this category, with its earnings-per-share rising to $5.61.
“Northrop Grumman delivered strong results in 2019, and we continue to create sustained value for our shareholders and customers through an unwavering focus on performance, innovation and agility,” Northrop Grumman Chairman, CEO, and President Kathy Warden said in a statement.