We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Northrop Grumman Corporation (NOC - Free Report) reported second-quarter 2023 earnings of $5.34 per share, which beat the Zacks Consensus Estimate of $5.31 by 0.6%. The bottom line, however, decreased 12% from $6.06 per share recorded in the year-ago quarter.
Total Sales
NOC’s total sales of $9.58 billion beat the Zacks Consensus Estimate of $9.32 billion by 2.7%. The top line also increased 9% from $8.80 billion in the year-ago quarter.
This sales improvement can be attributed to strong demand along with improving labor availability and supplier deliveries.
Northrop Grumman Corporation Price, Consensus and EPS Surprise
The company’s total backlog was pegged at $78.81 billion at the end of second-quarter 2023 compared with $77.50 billion at the end of first-quarter 2023.
Segmental Details
Aeronautics Systems: This segment’s sales of $2,595 million rose 2% year over year, due to higher volumes from both Manned Aircraft and Autonomous Systems.
The unit’s operating income went up 8% to $278 million, whereas the operating margin expanded 50 basis points (bps) to 10.7%.
Mission Systems: Sales at this segment increased 5% to $2,641 million. This was due to higher restricted sales in the Networked Information Solutions business area as well as higher volume on the Surface Electronic Warfare Improvement Program and marine systems program.
The unit’s operating income decreased 3% to $401 million, while the operating margin contracted 120 bps to 15.2%.
Defense Systems: This segment’s sales increased 10% to $1,420 million. This was driven by higher sales volume from both the Battle Management & Missile Systems as well as Mission Readiness.
The unit’s operating income dropped 1% to $166 million, while the operating margin contracted 130 bps to 11.7%.
Space Systems: Sales at this segment rose 17% to $3,488 million, driven by higher sales from both the Launch & Strategic Missiles as well as Space business areas.
The segment’s operating income declined 9% to $283 million, while the operating margin contracted 230 bps to 8.1%.
Operational Update
The company’s operating income during the quarter improved 1.4% to $967 million, driven by a reduction in the FAS/CAS operating adjustment.
Financial Condition
Northrop Grumman’s cash and cash equivalents as of Jun 30, 2023 were $3,384 million, up from $2,577 million as of Dec 31, 2022.
Long-term debt (net of the current portion) was $13,796 million compared with $11,805 million as of Dec 31, 2022.
Northrop’s net cash flow from operating activities as of Jun 30, 2023 was $217 million against the year-ago quarter’s cash outflow worth $685 million.
2023 Guidance
Northrop Grumman raised some of its financial guidance for 2023.
The company currently expects revenues in the range of $38.40-$38.80 billion compared with its earlier guidance range of $38.00-$38.40 billion for 2023. The Zacks Consensus Estimate for the same is pegged at $38.38 billion, which is lower than the company’s guided range.
Adjusted earnings are now projected in the range of $22.45-$22.85 per share compared with prior guidance range of $22.25-$22.85 per share. The Zacks Consensus Estimate for the same is pegged at $22.58 per share, which lies lower than the mid-point of the company’s guided range.
NOC continues to expect adjusted free cash flow in the range of $1.85-$2.15 billion.
Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2023 adjusted earnings of $6.73 per share, which surpassed the Zacks Consensus Estimate of $6.43 by 4.7%. The bottom line also improved 6.5% from the year-ago quarter's figure.
Net sales amounted to $16.69 billion, which surpassed the Zacks Consensus Estimate of $15.86 billion by 5.3%. The top line rose 8.1% from $15.45 billion registered in the year-ago quarter.
Hexcel Corporation (HXL - Free Report) reported second-quarter 2023 adjusted earnings of 50 cents per share, which beat the Zacks Consensus Estimate of 48 cents by 4.2%. The bottom line improved 51.5% from the year-ago quarter’s level of 33 cents.
Net sales totaled $454 million, which beat the Zacks Consensus Estimate of $445 million by 2.2%. Also, the top line witnessed an improvement of 15.6% from the year-ago quarter’s $393 million.
Raytheon Technologies Corporation’s (RTX - Free Report) second-quarter 2023 adjusted earnings per share of $1.29 beat the Zacks Consensus Estimate of $1.17 by 10.3%. The bottom line also improved 11% from the year-ago quarter’s level of $1.16.
Sales of $18,315 million beat the Zacks Consensus Estimate of $17,543 million by 4.4%. The figure also rose 12.3% from $16,314 million recorded in the year-ago period.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Northrop Grumman (NOC) Beats on Q2 Earnings, Ups '23 Sales View
Northrop Grumman Corporation (NOC - Free Report) reported second-quarter 2023 earnings of $5.34 per share, which beat the Zacks Consensus Estimate of $5.31 by 0.6%. The bottom line, however, decreased 12% from $6.06 per share recorded in the year-ago quarter.
Total Sales
NOC’s total sales of $9.58 billion beat the Zacks Consensus Estimate of $9.32 billion by 2.7%. The top line also increased 9% from $8.80 billion in the year-ago quarter.
This sales improvement can be attributed to strong demand along with improving labor availability and supplier deliveries.
Northrop Grumman Corporation Price, Consensus and EPS Surprise
Northrop Grumman Corporation price-consensus-eps-surprise-chart | Northrop Grumman Corporation Quote
Backlog Count
The company’s total backlog was pegged at $78.81 billion at the end of second-quarter 2023 compared with $77.50 billion at the end of first-quarter 2023.
Segmental Details
Aeronautics Systems: This segment’s sales of $2,595 million rose 2% year over year, due to higher volumes from both Manned Aircraft and Autonomous Systems.
The unit’s operating income went up 8% to $278 million, whereas the operating margin expanded 50 basis points (bps) to 10.7%.
Mission Systems: Sales at this segment increased 5% to $2,641 million. This was due to higher restricted sales in the Networked Information Solutions business area as well as higher volume on the Surface Electronic Warfare Improvement Program and marine systems program.
The unit’s operating income decreased 3% to $401 million, while the operating margin contracted 120 bps to 15.2%.
Defense Systems: This segment’s sales increased 10% to $1,420 million. This was driven by higher sales volume from both the Battle Management & Missile Systems as well as Mission Readiness.
The unit’s operating income dropped 1% to $166 million, while the operating margin contracted 130 bps to 11.7%.
Space Systems: Sales at this segment rose 17% to $3,488 million, driven by higher sales from both the Launch & Strategic Missiles as well as Space business areas.
The segment’s operating income declined 9% to $283 million, while the operating margin contracted 230 bps to 8.1%.
Operational Update
The company’s operating income during the quarter improved 1.4% to $967 million, driven by a reduction in the FAS/CAS operating adjustment.
Financial Condition
Northrop Grumman’s cash and cash equivalents as of Jun 30, 2023 were $3,384 million, up from $2,577 million as of Dec 31, 2022.
Long-term debt (net of the current portion) was $13,796 million compared with $11,805 million as of Dec 31, 2022.
Northrop’s net cash flow from operating activities as of Jun 30, 2023 was $217 million against the year-ago quarter’s cash outflow worth $685 million.
2023 Guidance
Northrop Grumman raised some of its financial guidance for 2023.
The company currently expects revenues in the range of $38.40-$38.80 billion compared with its earlier guidance range of $38.00-$38.40 billion for 2023. The Zacks Consensus Estimate for the same is pegged at $38.38 billion, which is lower than the company’s guided range.
Adjusted earnings are now projected in the range of $22.45-$22.85 per share compared with prior guidance range of $22.25-$22.85 per share. The Zacks Consensus Estimate for the same is pegged at $22.58 per share, which lies lower than the mid-point of the company’s guided range.
NOC continues to expect adjusted free cash flow in the range of $1.85-$2.15 billion.
Zacks Rank
Northrop Grumman currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Q2 Defense Earnings
Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2023 adjusted earnings of $6.73 per share, which surpassed the Zacks Consensus Estimate of $6.43 by 4.7%. The bottom line also improved 6.5% from the year-ago quarter's figure.
Net sales amounted to $16.69 billion, which surpassed the Zacks Consensus Estimate of $15.86 billion by 5.3%. The top line rose 8.1% from $15.45 billion registered in the year-ago quarter.
Hexcel Corporation (HXL - Free Report) reported second-quarter 2023 adjusted earnings of 50 cents per share, which beat the Zacks Consensus Estimate of 48 cents by 4.2%. The bottom line improved 51.5% from the year-ago quarter’s level of 33 cents.
Net sales totaled $454 million, which beat the Zacks Consensus Estimate of $445 million by 2.2%. Also, the top line witnessed an improvement of 15.6% from the year-ago quarter’s $393 million.
Raytheon Technologies Corporation’s (RTX - Free Report) second-quarter 2023 adjusted earnings per share of $1.29 beat the Zacks Consensus Estimate of $1.17 by 10.3%. The bottom line also improved 11% from the year-ago quarter’s level of $1.16.
Sales of $18,315 million beat the Zacks Consensus Estimate of $17,543 million by 4.4%. The figure also rose 12.3% from $16,314 million recorded in the year-ago period.