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Northrop Grumman (NOC) Reports Q1 Earnings: What Key Metrics Have to Say

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For the quarter ended March 2023, Northrop Grumman (NOC - Free Report) reported revenue of $9.3 billion, up 5.7% over the same period last year. EPS came in at $5.50, compared to $6.10 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $9.2 billion, representing a surprise of +1.09%. The company delivered an EPS surprise of +6.59%, with the consensus EPS estimate being $5.16.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Northrop Grumman performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Revenue- Mission Systems: $2.56 billion compared to the $2.62 billion average estimate based on four analysts. The reported number represents a change of +2.6% year over year.
  • Revenue- Aeronautics Systems: $2.52 billion compared to the $2.63 billion average estimate based on four analysts. The reported number represents a change of -7% year over year.
  • Revenue- Intersegment eliminations: -$503 million versus -$660.10 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -7% change.
  • Revenue- Space Systems: $3.35 billion versus $3.32 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +17.3% change.
  • Revenue- Defense Systems: $1.38 billion compared to the $1.28 billion average estimate based on four analysts. The reported number represents a change of +7.3% year over year.
  • Operating income (loss)- Mission Systems: $360 million compared to the $397.04 million average estimate based on four analysts.
  • Operating income (loss)- Intersegment eliminations: -$68 million compared to the -$73.11 million average estimate based on four analysts.
  • Operating income (loss)- Space Systems: $313 million compared to the $307.13 million average estimate based on four analysts.
  • Operating income (loss)- Defense Systems: $160 million versus $147.92 million estimated by four analysts on average.
  • Operating income (loss)- Aeronautics Systems: $237 million versus the four-analyst average estimate of $267.91 million.
View all Key Company Metrics for Northrop Grumman here>>>

Shares of Northrop Grumman have returned -2.7% over the past month versus the Zacks S&P 500 composite's +2.2% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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