Northrop Grumman (NYSE: NOC) reported Q1 EPS of $2.77, $0.28 better than the analyst estimate of $2.49. Revenue for the quarter came in at $5.96 billion versus the consensus estimate of $5.93 billion.

First quarter 2016 segment operating income decreased to $701 million, and segment operating margin rate decreased 50 basis points to 11.8 percent primarily due to lower operating income for Aerospace Systems than in the prior year period. Operating income decreased 5 percent and operating margin rate decreased 70 basis points to 12.4 percent. Lower operating income reflects the decline in segment operating income and a lower net FAS/CAS pension adjustment than in the prior year period.

During the first quarter of 2016, the company’s total backlog increased and reflects higher backlog at Aerospace Systems and Mission Systems and a modest decline in backlog at Technology Services. The company recorded various awards during the quarter, including a portion of the B-21 Long-Range Strike Bomber program.

GUIDANCE:

Northrop Grumman sees FY2016 EPS of $10.40-$10.70, versus prior guidance of $9.90-$10.20 and the consensus of $10.23.

For earnings history and earnings-related data on Northrop Grumman (NOC) click here.