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Northrop Grumman (NOC) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
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Northrop Grumman (NOC - Free Report) reported $9.78 billion in revenue for the quarter ended September 2023, representing a year-over-year increase of 9%. EPS of $6.18 for the same period compares to $5.89 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $9.67 billion, representing a surprise of +1.13%. The company delivered an EPS surprise of +6.37%, with the consensus EPS estimate being $5.81.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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:
Sales- Mission Systems: $2.63 billion versus $2.68 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +7% change.
Sales- Aeronautics Systems: $2.77 billion compared to the $2.51 billion average estimate based on five analysts. The reported number represents a change of +9% year over year.
Sales- Intersegment eliminations: -$546 million versus -$445.95 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +3% change.
Sales- Space Systems: $3.51 billion versus $3.46 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +10.8% change.
Sales- Defense Systems: $1.42 billion versus $1.44 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +5.7% change.
Operating income (loss)- Intersegment eliminations: -$74 million versus the five-analyst average estimate of -$73.84 million.
Operating income (loss)- Defense Systems: $182 million compared to the $176.29 million average estimate based on five analysts.
Operating income (loss)- Mission Systems: $386 million compared to the $413.11 million average estimate based on five analysts.
Operating income (loss)- Space Systems: $312 million versus $324.91 million estimated by five analysts on average.
Operating income (loss)- Aeronautics Systems: $283 million versus the five-analyst average estimate of $254.10 million.
Segment operating income adjustment- FAS/CAS operating adjustment: -$20 million versus -$32.74 million estimated by four analysts on average.
Segment operating income adjustment- Unallocated corporate expenses: -$53 million compared to the -$77.40 million average estimate based on three analysts.
Shares of Northrop Grumman have returned +10.5% over the past month versus the Zacks S&P 500 composite's -3.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Northrop Grumman (NOC) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
Northrop Grumman (NOC - Free Report) reported $9.78 billion in revenue for the quarter ended September 2023, representing a year-over-year increase of 9%. EPS of $6.18 for the same period compares to $5.89 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $9.67 billion, representing a surprise of +1.13%. The company delivered an EPS surprise of +6.37%, with the consensus EPS estimate being $5.81.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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:
- Sales- Mission Systems: $2.63 billion versus $2.68 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +7% change.
- Sales- Aeronautics Systems: $2.77 billion compared to the $2.51 billion average estimate based on five analysts. The reported number represents a change of +9% year over year.
- Sales- Intersegment eliminations: -$546 million versus -$445.95 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +3% change.
- Sales- Space Systems: $3.51 billion versus $3.46 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +10.8% change.
- Sales- Defense Systems: $1.42 billion versus $1.44 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +5.7% change.
- Operating income (loss)- Intersegment eliminations: -$74 million versus the five-analyst average estimate of -$73.84 million.
- Operating income (loss)- Defense Systems: $182 million compared to the $176.29 million average estimate based on five analysts.
- Operating income (loss)- Mission Systems: $386 million compared to the $413.11 million average estimate based on five analysts.
- Operating income (loss)- Space Systems: $312 million versus $324.91 million estimated by five analysts on average.
- Operating income (loss)- Aeronautics Systems: $283 million versus the five-analyst average estimate of $254.10 million.
- Segment operating income adjustment- FAS/CAS operating adjustment: -$20 million versus -$32.74 million estimated by four analysts on average.
- Segment operating income adjustment- Unallocated corporate expenses: -$53 million compared to the -$77.40 million average estimate based on three analysts.
View all Key Company Metrics for Northrop Grumman here>>>Shares of Northrop Grumman have returned +10.5% over the past month versus the Zacks S&P 500 composite's -3.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.