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

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Northrop Grumman (NOC - Free Report) reported $10.13 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 9%. EPS of $6.32 for the same period compares to $5.50 a year ago.

The reported revenue represents a surprise of +3.56% over the Zacks Consensus Estimate of $9.78 billion. With the consensus EPS estimate being $5.83, the EPS surprise was +8.40%.

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.

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- Aeronautics Systems: $2.97 billion versus $2.63 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +18.1% change.
  • Sales- Defense Systems: $1.41 billion compared to the $1.44 billion average estimate based on five analysts. The reported number represents a change of +2.6% year over year.
  • Sales- Intersegment eliminations: -$562 million versus -$557.42 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +11.7% change.
  • Sales- Space Systems: $3.66 billion versus the five-analyst average estimate of $3.58 billion. The reported number represents a year-over-year change of +9.1%.
  • Sales- Mission Systems: $2.66 billion compared to the $2.67 billion average estimate based on five analysts. The reported number represents a change of +3.8% year over year.
  • Operating income (loss)- Intersegment eliminations: -$80 million compared to the -$73.87 million average estimate based on five analysts.
  • Operating income (loss)- Defense Systems: $177 million compared to the $170.72 million average estimate based on five analysts.
  • Operating income (loss)- Mission Systems: $378 million versus $397.28 million estimated by five analysts on average.
  • Operating income (loss)- Space Systems: $332 million compared to the $315.46 million average estimate based on five analysts.
  • Operating income (loss)- Aeronautics Systems: $297 million versus $280.02 million estimated by five analysts on average.
  • Segment operating income adjustment- Unallocated corporate expenses: -$39 million versus the three-analyst average estimate of -$63.04 million.
  • Segment operating income adjustment- FAS/CAS operating adjustment: $6 million compared to the $7.33 million average estimate based on three analysts.
View all Key Company Metrics for Northrop Grumman here>>>

Shares of Northrop Grumman have returned -0.6% over the past month versus the Zacks S&P 500 composite's -3% 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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