• Northrop Grumman‘s 1Q Sales exceeded estimates with a total of $10.13 billion, marking an 8.9% y/y increase.
• Aeronautics Systems sales increased by 18% y/y to $2.97 billion, surpassing the previous estimate of $2.62 billion.
• Defense Systems sales experienced a slight increase of 2.6% y/y, resulting in a total of $1.41 billion; however, falling slightly short of the estimated $1.43 billion.
• Mission Systems sales amounted to $2.66 billion – a 3.7% y/y increase, narrowly missing the estimate of $2.68 billion.
• Space Systems sales outstripped estimations with a total sales of $3.66 billion – a 9.1% y/y increase against the estimate of $3.58 billion.
• EPS reported at $6.32 as compared to $5.50 in the previous year.
• Operating income for Northrop Grumman rose by 13% y/y to reach $1.07 billion, outperforming the estimate of $1 billion.
• Aeronautics systems saw a 25% y/y increase in operating income, putting it at $297 million against the estimated $251.3 million.
• With an 11% y/y increase, Defense systems’ operating income amounted to $177 million, surpassing the $170.2 million estimation.
• Operating income for Mission systems was reported at $378 million, marking a 5% y/y increase; however, short of the estimate of $392.7 million.
• Space Systems’ operating income rose by 6.1% to reach $332 million, slightly outstripping the $321.9 million expectation.
• Northrop Grumman‘s capital expenditure fell by 13% y/y to $270.0 million.
• The company’s backlog amounted to $78.92 billion.
• The company’s stock was rated with 8 buys, 13 holds, and 2 sells.
Northrop Grumman on Smartkarma
Analysts on Smartkarma, like Baptista Research, are bullish on Northrop Grumman Corporation. In a recent report titled “Northrop Grumman Corporation: A String Of Opportunities for Improvement and Growth! – Major Drivers,” they highlighted the company’s robust performance despite economic pressures. The Q4 and year-end 2023 earnings call showcased a revenue increase of over 7% and a record backlog exceeding $84 billion, setting a strong foundation for future growth. The company’s outlook, as documented in the call, demonstrates strong operational performance at the high end of their guidance range, surpassing sales guidance comfortably.
A look at Northrop Grumman Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
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
Northrop Grumman Corporation, a global security company, appears to have a promising long-term outlook based on the Smartkarma Smart Scores. With a solid score in Dividend and Growth, the company shows potential for steady financial returns and sustained expansion. Additionally, its strong momentum score suggests positive market trends in the near future, which could bode well for Northrop Grumman‘s overall performance in the coming years.
Despite slightly lower scores in Value and Resilience, Northrop Grumman‘s overall outlook remains positive. The company’s focus on aerospace, electronics, and technical services for both government and commercial clients positions it well in the global security sector. Investors may find Northrop Grumman an attractive long-term investment option given its balanced performance across key factors analyzed by Smartkarma.
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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