Northrop Grumman reports Q4 (Dec) results, misses on revs; guides FY16 EPS below consensus, revs below consensus
- Reports Q4 (Dec) GAAP earnings of $2.49 per share, may not be comparable to the Capital IQ Consensus of $2.01; revenues fell 6.8% year/year to $5.69 bln vs the $5.93 bln Capital IQ Consensus.
- As a result of the passage of the Protecting Americans from Tax Hikes Act of 2015, which made permanent research and development tax credits, the company recognized a full year credit of $60 million, or $0.33 per diluted share, in Q4.
- EPS also includes $0.31 pension adjustment.
- Co issues downside guidance for FY16, sees EPS of $9.90-10.20 vs. $10.52 Capital IQ Consensus Estimate; sees FY16 revs of $23.5-24.0 bln vs. $24.41 bln Capital IQ Consensus Estimate.
Backlog -6% to $35.9 bln.