Northrop Profit Below Estimates

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Northrop Grumman Corp. said on Thursday its adjusted fourth quarter results missed Wall Street estimates due to the sale of one of its units.

The Los Angeles defense contractor reported net income of $413 million ($1.31 a share), compared with a loss of $2.5 billion (-$7.75) a year ago when the company took a large goodwill impairment charge.

The company had a gain of 5 cents a share from the December sale of its TASC advisory services business. But restated with the TASC divestiture, revenue rose 2 percent to $8.93 billion. Sale of the advisory business caused operating income for the information systems segment to drop 35 percent, leading to the missed estimate.

Meanwhile, sales in the Los Angeles County based Aerospace Systems division rose 7 percent to $2.7 billion, leading to operating income of $291 million compared with a loss of $305 million the previous year.

Northrop said earnings from continuing operations were $1.19 a share, lower than the $1.26 average estimate of adjusted earnings by analysts surveyed by Thomson Reuters.

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