Northrop Grumman earnings fall as revenue sinks 2%

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Courtesy Northrop Grumman

The MQ-5B Hunter, one of Northrop Grumman's high-profile drones. Northrop Grumman raised its 2014 earnings guidance despite a 5 percent decline in profits in the third quarter.

Tucker Echols

Broadcast/Web Reporter- Washington Business Journal

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Falls Church-based Northrop Grumman Corp. reported a 2 percent drop in revenue in the third quarter and a 5 percent decline in profits.

Northrop Grumman said Wednesday its revenues eased to $5.98 billion last quarter from $6.1 billion a year ago.

Net earnings fell to $473 million, $2.26 per diluted share, from $497 million, $2.14 per diluted share, in the prior-year period. Share buybacks boosted the per share figure as the company repurchased 6 million shares of its common stock for $753 million. The weighted average of shares outstanding in the quarter was 209.2 million compared with 232.6 million in the prior-year period.

For the full year, Northrop Grumman (NYSE: NOC) raised its guidance for diluted earnings per share to a range of $9.40 to 9.50 from a range of $9.15 to $9.35.

Tucker Echols covers general assignment and provides business coverage for WTOP.