Northrop Grumman NOC reported first-quarter 2016 adjusted earnings of $2.77 per share, beating the Zacks Consensus Estimate of $2.47 by 12.1%. Earnings also jumped 29.4% from $2.14 earned in the year-ago quarter on higher sales volumes. Excluding after-tax pension adjustments, earnings came in at $3.03 per share, up 25.7% year over year. Total Revenue In the first quarter of 2016, Northrop Grumman reported total revenue of $5,956 million, beating the Zacks Consensus Estimate of $5,907 million by 0.8%. Revenues were almost in line with the year-ago figure of $5,957 million. Quarterly Segmental Details Aerospace Systems: Segment sales of $2.57 billion rose 3% year over year on the back of higher volumes for the manned aircraft and autonomous systems programs. Operating income, however, dropped 8.3% to $286 million, while operating margin contracted 140 basis points (bps) to 11.1% due to a less favorable performance of the unmanned programs. Mission Systems: Segment sales were down 0.7% to $2.69 billion due to lower volumes for the cyber and ISR programs. Operating income, however, inched up 2.6%, while operating margin expanded 40 bps to 13.1%. Technology Services: Sales at the segment were $1.21 billion, down 4.2%. The decrease was primarily due to lower volumes for the Global Logistics and Modernization (GLM), and Advanced Defense Services (ADS) programs. Operating income fell 5.3%, while operating margin shrunk 10 bps to 10.4%. Operational Update Total operating cost and expenses in the first quarter were $5.2 billion, up 0.8%. Operating income during the quarter fell 5.3% year over year to $0.7 billion. Financial Condition Northrop Grumman’s cash and cash equivalents as of Mar 31, 2016 were $1.28 billion, compared with $2.32 billion as of Dec 31, 2015. Long-term debt (net of current portion) as of Mar 31, 2016 was $6.39 billion, almost in line with the quarter-ago figure. Net cash outflow from operating activities in first-quarter 2016 was $60 million, compared with an outflow of $654 million in the year-ago period. 2016 Guidance Northrop Grumman reiterated its revenue expectations in the band of $23.5 billion to $24.0 billion. The company raised its guidance for diluted earnings per share to the range of $10.40 to $10.70 from the prior projection of $9.90–$10.20. Further, the company reiterated its free cash flow guidance of $1.5–$1.8 billion. Other Aerospace & Defense Releases Rockwell Collins Inc. COL reported financial results for second-quarter fiscal 2016 ended Mar 31. The company’s adjusted earnings per share of $1.30 surpassed the Zacks Consensus Estimate of $1.29 by 0.8%. Reported earnings also improved 6.6% from the year-ago adjusted profit level of $1.22 per share. Textron Inc. TXT reported first-quarter 2016 earnings from continuing operations of 55 cents per share, beating the Zacks Consensus Estimate of 53 cents by 3.8%. Earnings also surged 19.6% from 46 cents per share reported in the year-ago quarter. Pentagon’s prime contractor, Lockheed Martin Corp. LMT reported adjusted first-quarter 2016 earnings of $2.58 per share, surpassing the Zacks Consensus Estimate of $2.51 by 2.8%. Earnings, however, fell 5.8% from the year-ago level. Zacks Rank Northrop currently has a Zacks Rank #3 (Hold). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NORTHROP GRUMMN (NOC): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report ROCKWELL COLLIN (COL): Free Stock Analysis Report TEXTRON INC (TXT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research