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 fourth-quarter 2020 earnings of $6.59 per share, beating the Zacks Consensus Estimate of $5.70 by 15.6%. Reported earnings also improved 17.5% from $5.61 in the year-ago quarter.
For 2020, earnings were $23.65 per share, up 11.5% from the year-ago quarter. Moreover, 2020 earnings exceeded the Zacks Consensus Estimate of $22.72 by 4.1%.
Total Revenues
In fourth-quarter 2020, Northrop Grumman reported total revenues of $10,212 million, surpassing the Zacks Consensus Estimate of $9,235 million by 10.6%.
Moreover, revenues increased 17% from the year-ago quarter’s $8,721 million. The year-over-year upside was primarily driven by a 24% increase in Aeronautics systems sales, 31% in Space Systems sales and 10% in Mission Systems sales.
In 2020, total revenues grew 9% year over year to $36,799 million. Full-year revenues also exceeded the Zacks Consensus Estimate of $35,820 million by 2.7%.
Segmental Details
Effective Jan 1, 2020, Northrop Grumman made some structural changes in its reportable segments.
Aeronautics Systems: Segment sales of $3,487 million grew 34% year over year as a result of higher sales from manned aircraft.
Operating income improved 10% to $339 million, whereas operating margin contracted 130 basis points (bps) to 9.7%.
Mission Systems: Segment sales increased 10% to $2,736 million, driven by higher sales volumes from airborne sensors and network sales; increased navigation, targeting & survivability sales; cyber & intelligence mission solutions sales; and elevated maritime/land systems & sensors sales.
Operating income, however, declined 2% to $389 million, while operating margin contracted 170 bps to 14.2%.
Defense Systems: Sales in this segment grew 2% to $1,917 million owing to higher volumes in mission readiness programs.
Operating income increased 22% to $214 million, while operating margin expanded 180 bps to 11.2%.
Space Systems: Space Systems’ fourth-quarter 2020 sales rose 31% to $2,550 million owing to higher sales from both Space and Launch & Strategic Missiles programs.
The segment’s operating income improved 17% to $258 million, whereas operating margin contracted 120 bps to 10.1%.
Operational Update
Total operating costs and expenses at the end of the quarter were $32,734 million, up 9.6%.
Operating income during the quarter increased 2.4% to $4,065 million.
Northrop Grumman Corporation Price, Consensus and EPS Surprise
Northrop Grumman’s cash and cash equivalents as of Dec 31, 2020, were $4,907 million, up from $2,245 million as of Dec 31, 2019.
Long-term debt (net of current portion) as of Dec 31, 2020, was $14,261 million, down from $12,770 million as of 2019-end.
Net cash inflow from operating activities as of Dec 31, 2020, was $4,305 million compared with $4,297 million as of Dec 31, 2019.
2021 Guidance
Northrop Grumman currently expects to generate revenues of $35.1-$35.5 billion during 2021. The Zacks Consensus Estimate for revenues, pegged at $37.51 billion, is higher than the guided range.
The 2021 earnings are expected to be $23.15-$23.65 per share. The Zacks Consensus Estimate for EPS, pegged at $23.99, lies above the guided range.
Zacks Rank
Northrop Grumman currently carries a Zacks Rank #4 (Sell).
Hexcel Corporation (HXL - Free Report) , a Zacks Rank #3 company, reported fourth-quarter 2020 loss of 18 cents per share, in line with the Zacks Consensus Estimate.
General Dynamics Corporation (GD - Free Report) reported fourth-quarter 2020 earnings from continuing operations of $3.49 per share, which missed the Zacks Consensus Estimate of $3.55 by 1.7%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Northrop Grumman (NOC) Q4 Earnings Beat, Revenues Rise Y/Y
Northrop Grumman Corporation (NOC - Free Report) reported fourth-quarter 2020 earnings of $6.59 per share, beating the Zacks Consensus Estimate of $5.70 by 15.6%. Reported earnings also improved 17.5% from $5.61 in the year-ago quarter.
For 2020, earnings were $23.65 per share, up 11.5% from the year-ago quarter. Moreover, 2020 earnings exceeded the Zacks Consensus Estimate of $22.72 by 4.1%.
Total Revenues
In fourth-quarter 2020, Northrop Grumman reported total revenues of $10,212 million, surpassing the Zacks Consensus Estimate of $9,235 million by 10.6%.
Moreover, revenues increased 17% from the year-ago quarter’s $8,721 million. The year-over-year upside was primarily driven by a 24% increase in Aeronautics systems sales, 31% in Space Systems sales and 10% in Mission Systems sales.
In 2020, total revenues grew 9% year over year to $36,799 million. Full-year revenues also exceeded the Zacks Consensus Estimate of $35,820 million by 2.7%.
Segmental Details
Effective Jan 1, 2020, Northrop Grumman made some structural changes in its reportable segments.
Aeronautics Systems: Segment sales of $3,487 million grew 34% year over year as a result of higher sales from manned aircraft.
Operating income improved 10% to $339 million, whereas operating margin contracted 130 basis points (bps) to 9.7%.
Mission Systems: Segment sales increased 10% to $2,736 million, driven by higher sales volumes from airborne sensors and network sales; increased navigation, targeting & survivability sales; cyber & intelligence mission solutions sales; and elevated maritime/land systems & sensors sales.
Operating income, however, declined 2% to $389 million, while operating margin contracted 170 bps to 14.2%.
Defense Systems: Sales in this segment grew 2% to $1,917 million owing to higher volumes in mission readiness programs.
Operating income increased 22% to $214 million, while operating margin expanded 180 bps to 11.2%.
Space Systems: Space Systems’ fourth-quarter 2020 sales rose 31% to $2,550 million owing to higher sales from both Space and Launch & Strategic Missiles programs.
The segment’s operating income improved 17% to $258 million, whereas operating margin contracted 120 bps to 10.1%.
Operational Update
Total operating costs and expenses at the end of the quarter were $32,734 million, up 9.6%.
Operating income during the quarter increased 2.4% to $4,065 million.
Northrop Grumman Corporation Price, Consensus and EPS Surprise
Northrop Grumman Corporation price-consensus-eps-surprise-chart | Northrop Grumman Corporation Quote
Financial Condition
Northrop Grumman’s cash and cash equivalents as of Dec 31, 2020, were $4,907 million, up from $2,245 million as of Dec 31, 2019.
Long-term debt (net of current portion) as of Dec 31, 2020, was $14,261 million, down from $12,770 million as of 2019-end.
Net cash inflow from operating activities as of Dec 31, 2020, was $4,305 million compared with $4,297 million as of Dec 31, 2019.
2021 Guidance
Northrop Grumman currently expects to generate revenues of $35.1-$35.5 billion during 2021. The Zacks Consensus Estimate for revenues, pegged at $37.51 billion, is higher than the guided range.
The 2021 earnings are expected to be $23.15-$23.65 per share. The Zacks Consensus Estimate for EPS, pegged at $23.99, lies above the guided range.
Zacks Rank
Northrop Grumman currently carries a Zacks Rank #4 (Sell).
Recent Defense Releases
Lockheed Martin Corp. (LMT - Free Report) , a Zacks Rank #3 (Hold) company, reported fourth-quarter 2020 earnings from continuing operations of $6.38 per share, which came in line with the Zacks Consensus Estimate. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hexcel Corporation (HXL - Free Report) , a Zacks Rank #3 company, reported fourth-quarter 2020 loss of 18 cents per share, in line with the Zacks Consensus Estimate.
General Dynamics Corporation (GD - Free Report) reported fourth-quarter 2020 earnings from continuing operations of $3.49 per share, which missed the Zacks Consensus Estimate of $3.55 by 1.7%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>