When Northrop Grumman announced this $9.2 billion merger back in September, management forecast that combining the two companies would yield "annual cost savings of $150 million by 2020" and "be accretive to EPS and FCF per share in first full year." Given that over the past year, Northrop booked $2.4 billion in net profits on $25.6 billion in sales, while Orbital ATK booked $313 million in profits on $4.7 billion in sales, this implies that the combined firm will start off with annual sales of about $30.3 billion, and earn about $2.7 billion on these sales -- about an 8.9% net profit margin. All else being equal, assuming Northrop's promised cost savings arrive as planned, merging these two companies should squeeze out enough costs to lift that profit margin about 30 basis points, to 9.2%.