- Northrop Grumman‘s 2Q sales reached $10.22 billion, a 6.7% increase year-over-year, beating the estimate of $10.02 billion.
- Aeronautics Systems sales were $2.96 billion, a 14% increase year-over-year, exceeding the estimate of $2.76 billion.
- Defense Systems sales stood at $1.51 billion, up 6.5% year-over-year, surpassing the estimate of $1.47 billion.
- Mission Systems sales amounted to $2.77 billion, a 5% increase year-over-year, just above the estimate of $2.75 billion.
- Space Systems sales were $3.57 billion, a 2.4% rise year-over-year, slightly below the estimate of $3.58 billion.
- Earnings per share (EPS) were reported at $6.36, significantly higher than the previous year’s $5.34.
- Operating income increased by 13% year-over-year to $1.09 billion, beating the estimate of $1.03 billion.
- Aeronautics Systems operating income was $295 million, a 6.1% increase year-over-year, higher than the estimate of $259.3 million.
- Defense Systems operating income reached $204 million, growing 23% year-over-year, above the estimate of $179.3 million.
- Mission Systems operating income dropped by 10% year-over-year to $361 million, below the estimate of $406.4 million.
- Space Systems operating income increased by 14% year-over-year to $324 million, exceeding the estimate of $318.6 million.
- Capital expenditure amounted to $320.0 million, a 5.3% increase year-over-year, but under the estimate of $389.6 million.
- Backlog reached a substantial $83.12 billion.
- Analyst recommendations: 10 buys, 13 holds, 2 sells.
Northrop Grumman on Smartkarma
Analyst Coverage of Northrop Grumman on Smartkarma:
Baptista Research, a prominent provider on Smartkarma, has published insightful research on Northrop Grumman Corporation. In their report titled “Northrop Grumman Corporation: Are Autonomous Aircrafts Expected To Be A Major Growth Catalyst In The Future? – Major Drivers,” they highlighted the company’s strong start for the financial quarter. Northrop Grumman reported a 9% year-over-year revenue increase across all four sectors, attributed to productivity and cost efficiency measures. The firm also saw a significant 15% EPS growth, indicating a positive outlook for the company’s performance.
In another report by Baptista Research titled “Northrop Grumman Corporation: A String Of Opportunities for Improvement and Growth! – Major Drivers,” the analysts applauded the company’s Q4 and year-end 2023 earnings call. Despite economic pressures, Northrop Grumman showcased robust performance with a revenue increase of over 7% and a record backlog exceeding $84 billion. The company’s operational performance surpassed sales guidance, setting a solid foundation for future growth as outlined in the report.
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
Northrop Grumman Corporation, a global security company known for its aerospace, electronics, and technical services, has a mixed outlook according to Smartkarma’s Smart Scores. While the company scores moderately on factors like Dividend and Growth, indicating stability and potential for expansion, its Value and Resilience scores are lower, suggesting some undervaluation and vulnerability. However, with a Momentum score of 3, there is a level of positive activity and market interest surrounding Northrop Grumman.
In summary, Northrop Grumman‘s overall outlook, as indicated by the Smart Scores, showcases a company that offers dividends and shows potential for growth, operating in the sectors of aerospace, electronics, and technical services. Despite some weaknesses in value and resilience, the company’s momentum score indicates ongoing market interest and activity, which could impact its long-term performance and strategic positioning in the global security industry.
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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