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 (NOC) Q4 Earnings Top Estimates, Sales Dip
Read MoreHide Full Article
Northrop Grumman Corporation (NOC - Free Report) reported fourth-quarter 2021 adjusted earnings of $6 per share, which surpassed the Zacks Consensus Estimate of $5.95 by 0.8%. The bottom line decreased 8.9% from $6.59 reported in the year-ago quarter.
The company reported adjusted earnings per share of $25.63 for full-year 2021, which improved 8.4% from 2020. Full-year earnings exceeded the Zacks Consensus Estimate of $25.59 per share by 0.2%.
Total Sales
In the fourth quarter of 2021, Northrop Grumman reported total sales of $8.64 billion, which missed the Zacks Consensus Estimate of $8.97 billion by 3.7%. Sales decreased 15% from the year-ago quarter’s $10.21 billion.
The downside was primarily due to a reduction in sales related to the IT services divestiture.
During full-year 2021, Northrop Grumman generated sales worth $35.67 billion, down 3% from the year-ago figure. Full-year sales missed the Zacks Consensus Estimate of $35.96 billion by a whisker.
Northrop Grumman Corporation Price, Consensus and EPS Surprise
Northrop Grumman’s total backlog stood at $76 billion at the end of 2021 compared with $81 billion at the 2020 end.
Segmental Details
Aeronautics Systems:Segment sales of $2,631 million declined 25% year over year due to a lower volume in both Manned Aircraft and Autonomous Systems.
Operating income declined 35% to $220 million, whereas operating margin contracted 130 basis points (bps) to 8.4%.
Mission Systems:Segment sales decreased 8% to $2,521 million due to a $133 million reduction in sales related to the IT services divestiture.
Operating income rose 3% to $402 million, with operating margin expanding 170 bps to 15.9%.
Defense Systems:Sales at this segment declined 28% to $1,378 million due to a reduction in sales related to the IT services divestiture.
Operating income declined 22% to $167 million, while operating margin expanded 90 bps to 12.1%.
Space Systems:Space Systems’ fourth-quarter 2021 sales rose 4% to $2,658 million due to higher sales from the Space and Launch & Strategic Missiles businesses.
The segment’s operating income declined 1% to $256 million, while operating margin contracted 50 bps to 9.6%.
Operational Update
Operating income during the quarter declined 36% to $742 million, primarily due to lower segment income.
Financial Condition
Northrop Grumman’s cash and cash equivalents at the end of 2021 were $3,530 million, down from $4,907 million as of Dec 31, 2020.
Long-term debt (net of the current portion) at the end of 2021 was $12,777 million, down from $14,261 million as of Dec 31, 2020.
Net cash inflow from operating activities at the end of 2021 was $3,567 million compared with $4,305 million as of Dec 31, 2020.
2022 Guidance
Northrop Grumman issued its financial guidance for 2022.
The company currently expects to generate revenues in the range of approximately $36.2-36.6 billion for 2022. The Zacks Consensus Estimate of $37.12 billion lies above the company’s guided range.
The company’s 2022 earnings are currently projected in the range of $24.50-$25.10 per share. The Zacks Consensus Estimate of $24.85 per share is slightly above the mid-point of the guided range.
The company expects its adjusted free cash flow in the range of $2.50-$2.80 billion in 2022.
General Dynamics (GD - Free Report) reported fourth-quarter 2021 earnings from continuing operations of $3.39 per share, which beat the Zacks Consensus Estimate of $3.37 by 0.6%.
General Dynamics’ long-term earnings growth is projected at 9%. The Zacks Consensus Estimate for GD’s 2022 earnings per share indicates year-over-year growth of 8.1%.
Raytheon Technologies Corporation’s (RTX - Free Report) fourth-quarter 2021 adjusted earnings per share of $1.08 outpaced the Zacks Consensus Estimate of $1.01 by 6.9%.
Raytheon Technologies’ long-term earnings growth is projected at 13.2%. The Zacks Consensus Estimate for RTX’s 2022 earnings per share indicates year-over-year growth of 14.5%.
Lockheed Martin Corporation (LMT - Free Report) reported fourth-quarter 2021 adjusted earnings of $7.24 per share, which surpassed the Zacks Consensus Estimate of $7.23 by 0.1%.
Lockheed Martin’s long-term earnings growth is projected at 3.6%. The Zacks Consensus Estimate for LMT’s 2022 earnings per share indicates year-over-year growth of 16.3%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Northrop Grumman (NOC) Q4 Earnings Top Estimates, Sales Dip
Northrop Grumman Corporation (NOC - Free Report) reported fourth-quarter 2021 adjusted earnings of $6 per share, which surpassed the Zacks Consensus Estimate of $5.95 by 0.8%. The bottom line decreased 8.9% from $6.59 reported in the year-ago quarter.
The company reported adjusted earnings per share of $25.63 for full-year 2021, which improved 8.4% from 2020. Full-year earnings exceeded the Zacks Consensus Estimate of $25.59 per share by 0.2%.
Total Sales
In the fourth quarter of 2021, Northrop Grumman reported total sales of $8.64 billion, which missed the Zacks Consensus Estimate of $8.97 billion by 3.7%. Sales decreased 15% from the year-ago quarter’s $10.21 billion.
The downside was primarily due to a reduction in sales related to the IT services divestiture.
During full-year 2021, Northrop Grumman generated sales worth $35.67 billion, down 3% from the year-ago figure. Full-year sales missed the Zacks Consensus Estimate of $35.96 billion by a whisker.
Northrop Grumman Corporation Price, Consensus and EPS Surprise
Northrop Grumman Corporation price-consensus-eps-surprise-chart | Northrop Grumman Corporation Quote
Backlog Count
Northrop Grumman’s total backlog stood at $76 billion at the end of 2021 compared with $81 billion at the 2020 end.
Segmental Details
Aeronautics Systems:Segment sales of $2,631 million declined 25% year over year due to a lower volume in both Manned Aircraft and Autonomous Systems.
Operating income declined 35% to $220 million, whereas operating margin contracted 130 basis points (bps) to 8.4%.
Mission Systems:Segment sales decreased 8% to $2,521 million due to a $133 million reduction in sales related to the IT services divestiture.
Operating income rose 3% to $402 million, with operating margin expanding 170 bps to 15.9%.
Defense Systems:Sales at this segment declined 28% to $1,378 million due to a reduction in sales related to the IT services divestiture.
Operating income declined 22% to $167 million, while operating margin expanded 90 bps to 12.1%.
Space Systems:Space Systems’ fourth-quarter 2021 sales rose 4% to $2,658 million due to higher sales from the Space and Launch & Strategic Missiles businesses.
The segment’s operating income declined 1% to $256 million, while operating margin contracted 50 bps to 9.6%.
Operational Update
Operating income during the quarter declined 36% to $742 million, primarily due to lower segment income.
Financial Condition
Northrop Grumman’s cash and cash equivalents at the end of 2021 were $3,530 million, down from $4,907 million as of Dec 31, 2020.
Long-term debt (net of the current portion) at the end of 2021 was $12,777 million, down from $14,261 million as of Dec 31, 2020.
Net cash inflow from operating activities at the end of 2021 was $3,567 million compared with $4,305 million as of Dec 31, 2020.
2022 Guidance
Northrop Grumman issued its financial guidance for 2022.
The company currently expects to generate revenues in the range of approximately $36.2-36.6 billion for 2022. The Zacks Consensus Estimate of $37.12 billion lies above the company’s guided range.
The company’s 2022 earnings are currently projected in the range of $24.50-$25.10 per share. The Zacks Consensus Estimate of $24.85 per share is slightly above the mid-point of the guided range.
The company expects its adjusted free cash flow in the range of $2.50-$2.80 billion in 2022.
Zacks Rank
Northrop Grumman currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
General Dynamics (GD - Free Report) reported fourth-quarter 2021 earnings from continuing operations of $3.39 per share, which beat the Zacks Consensus Estimate of $3.37 by 0.6%.
General Dynamics’ long-term earnings growth is projected at 9%. The Zacks Consensus Estimate for GD’s 2022 earnings per share indicates year-over-year growth of 8.1%.
Raytheon Technologies Corporation’s (RTX - Free Report) fourth-quarter 2021 adjusted earnings per share of $1.08 outpaced the Zacks Consensus Estimate of $1.01 by 6.9%.
Raytheon Technologies’ long-term earnings growth is projected at 13.2%. The Zacks Consensus Estimate for RTX’s 2022 earnings per share indicates year-over-year growth of 14.5%.
Lockheed Martin Corporation (LMT - Free Report) reported fourth-quarter 2021 adjusted earnings of $7.24 per share, which surpassed the Zacks Consensus Estimate of $7.23 by 0.1%.
Lockheed Martin’s long-term earnings growth is projected at 3.6%. The Zacks Consensus Estimate for LMT’s 2022 earnings per share indicates year-over-year growth of 16.3%.