- Northrop Grumman‘s total sales for the fourth quarter were $10.69 billion, which was below the estimated $10.97 billion, representing a modest 0.5% increase year-over-year.
- Aeronautics Systems achieved sales of $3.22 billion, exceeding the estimate of $3.14 billion with an 11% year-over-year growth.
- Defense Systems sales reached $2.33 billion, a 42% increase year-over-year, although they fell short of the $2.55 billion estimate.
- Mission Systems sales totaled $3.14 billion, up 2.6% from the previous year, but did not meet the $3.24 billion estimate.
- Space Systems sales were $2.71 billion, a decrease of 25% from the previous year, narrowly missing the $2.73 billion estimate.
- The company’s earnings per share (EPS) were reported at $8.66.
- Total operating income was $1.09 billion, slightly below the estimated $1.11 billion.
- Aeronautics Systems recorded an operating income of $292 million, recovering from a loss of $1.27 billion last year, but fell short of the $310.3 million estimate.
- Defense Systems operating income rose by 25% year-over-year to $252 million, slightly under the estimated $261.2 million.
- Operating income for Mission Systems was $469 million, a 1.5% increase year-over-year, surpassing the estimate of $452.9 million.
- Space Systems operating income was $275 million, down 9.5% year-over-year, marginally below the $280.9 million estimate.
- Free cash flow improved to $1.76 billion, up 8.3% from the previous year, exceeding the estimate of $1.68 billion.
- Capital expenditure rose 1.6% to $816.0 million, slightly below the $820.1 million estimate.
- The company’s backlog was recorded at $91.47 billion.
- Analyst recommendations are 13 buys, 11 holds, and 2 sells.
Northrop Grumman on Smartkarma
Analyst coverage of Northrop Grumman on Smartkarma reveals insights from top independent analysts at Baptista Research. In the report titled “Northrop Grumman Corporation: Expansion of Sentinel & GPI Programs & Other Major Drivers,” the analysts highlight Northrop Grumman‘s strong performance in the aerospace and defense sector. The company’s third-quarter results for 2024 were commendable, supported by a robust backlog of $85 billion and a significant book-to-bill ratio, indicating sustained demand for its defense technologies.
Alternatively, in another report by Baptista Research titled “Northrop Grumman Corporation: A Bear’s Perspective On What Could Drive Them Down! – Major Drivers,” a bearish outlook is presented despite the company’s strong financial and operational performance in the second quarter of 2024. The analysts acknowledge Northrop Grumman‘s substantial sales growth, operating income, and earnings per share increases compared to the previous year. They attribute these positive results to solid program execution and disciplined cost management strategies.
A look at Northrop Grumman Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
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Northrop Grumman Corporation, a global security company known for its expertise in aerospace, electronics, and information systems, has been evaluated using the Smartkarma Smart Scores. With a mixed bag of ratings, the company shows potential for steady growth but may face challenges in terms of value and resilience. While the Growth and Momentum scores come in at a solid 3, indicating a promising outlook for future expansion and market performance, the Value and Resilience scores fall short at 2. Investors may want to keep an eye on how Northrop Grumman navigates these areas to ensure long-term sustainability.
Despite facing some hurdles, Northrop Grumman remains a key player in providing cutting-edge systems, products, and solutions to a diverse range of government and commercial customers globally. The company’s dedication to security and technical services positions it as a significant player in the industry. With an overall outlook shaped by the Smartkarma Smart Scores, Northrop Grumman‘s trajectory in the market will likely be influenced by how it addresses the areas of value and resilience while leveraging its strengths in growth and momentum.
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Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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