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Will Poor Space Segment Performance Hit Northrop's Q2 Results?
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Key Takeaways
NOC's Aeronautics, Defense and Mission Systems units are expected to post year-over-year revenue gains.
Space Systems revenue is expected to fall 24.3% due to program wind-downs and fewer resupply missions.
Loss associated with the B-21 program is likely to have weighed on NOC's Q2 bottom-line performance.
Northrop Grumman Corporation ((NOC - Free Report) ) is scheduled to report second-quarter 2025 results on July 22, before market open.
The company delivered a four-quarter average earnings surprise of 5.43%. Higher operating income from the Defense Systems segment is likely to have contributed to its earnings, amid the poor revenue performance of the Space Systems segment. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Aeronautics Systems is Likely to Have Boosted the Top Line
Higher production volume for F-35 jets and increased Global Hawk sustainment activities are likely to have boosted the second-quarter revenue performance of the Aeronautics Systems segment.
The Zacks Consensus Estimate for the segment’s revenues is pegged at $3,151.1 million, indicating a rise of 6.3% from the year-ago quarter’s figure.
Northrop Grumman Corporation Price and EPS Surprise
Higher sales volumes from the Sentinel program and certain military ammunition programs are likely to have aided the Defense unit’s revenue performance.
The Zacks Consensus Estimate for Defense Systems’ revenues is pegged at $1,860.2 million, indicating an increase of 22.9% from the year-ago quarter’s number.
Mission Systems to Remain Solid
Higher sales volume from the Scalable Agile Beam Radar program, ramp-up on electronic warfare self-protection and international ground-based radar programs, as well as higher volume on marine systems programs, are expected to have favorably impacted Mission Systems’ revenue performance.
The Zacks Consensus Estimate for Mission Systems’ second-quarter revenues is pegged at $2,904.7 million, indicating growth of 4.7% from the year-ago quarter’s actual.
Space Systems to Reflect Dismal Performance
The Space Systems segment’s revenues are likely to have been adversely impacted primarily due to the wind-down of the company’s work on the restricted space and NGI programs, as well as decreased Commercial Resupply Services missions, Space Development Agency satellite programs and other restricted space programs.
The Zacks Consensus Estimate for Space Systems’ revenues is pegged at $2,704.8 million, implying a decrease of 24.3% from the year-ago quarter’s number.
Backlog Projections
Our model estimates NOC’s second-quarter backlog to increase 15% year over year to $95.61 billion.
Q2 Estimates
With three of NOC’s segments likely to report a year-over-year improvement in sales, one can be optimistic about its top-line results. However, the decline in the Space Systems segment is likely to have had some adverse impact on its overall revenue performance.
The Zacks Consensus Estimate for sales is pegged at $10.11 billion, indicating a slip of 1.1% from the prior-year figure.
Higher operating income from the Defense Systems segment and an increase in FAS/CAS operating adjustment are likely to have aided its second-quarter 2025 earnings performance.
However, loss provision on the B-21 program at Aeronautics Systems and lower operating income at Space Systems are projected to hurt NOC’s overall bottom-line results, to some extent.
The Zacks Consensus Estimate for NOC’s second-quarter earnings is pegged at $6.70 per share, indicating a rise of 5.4% from the prior-year figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for NOC this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.
Earnings ESP: NOC has an Earnings ESP of +3.10%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: NOC currently carries a Zacks Rank #4 (Sell).
Below, we have mentioned the following players from the same industry that have the right combination of elements to beat on earnings in the upcoming releases.
Huntington Ingalls Industries ((HII - Free Report) ) is set to report second-quarter 2025 earnings on July 31, 2025, before market open. It has an Earnings ESP of +0.56% and a Zacks Rank of 1 at present.
The Zacks Consensus Estimate for HII’s earnings is pegged at $3.22 per share. The consensus estimate for its sales is pegged at $2.93 billion.
General Dynamics ((GD - Free Report) ) is set to report its second-quarter 2025 results on July 23, before market open. It has an Earnings ESP of +4.08% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for GD’s earnings is pegged at $3.56 per share, indicating year-over-year growth of 9.2%. The consensus estimate for its sales is pegged at $12.22 billion, indicating year-over-year growth of 2%.
Textron Inc. ((TXT - Free Report) ) is set to report its second-quarter results on July 24, before market open. It has an Earnings ESP of +0.58% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for TXT’s earnings is pegged at $1.44 per share. The consensus estimate for its sales is pegged at $3.60 billion, indicating year-over-year growth of 2.2%.
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Will Poor Space Segment Performance Hit Northrop's Q2 Results?
Key Takeaways
Northrop Grumman Corporation ((NOC - Free Report) ) is scheduled to report second-quarter 2025 results on July 22, before market open.
The company delivered a four-quarter average earnings surprise of 5.43%. Higher operating income from the Defense Systems segment is likely to have contributed to its earnings, amid the poor revenue performance of the Space Systems segment. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Aeronautics Systems is Likely to Have Boosted the Top Line
Higher production volume for F-35 jets and increased Global Hawk sustainment activities are likely to have boosted the second-quarter revenue performance of the Aeronautics Systems segment.
The Zacks Consensus Estimate for the segment’s revenues is pegged at $3,151.1 million, indicating a rise of 6.3% from the year-ago quarter’s figure.
Northrop Grumman Corporation Price and EPS Surprise
Northrop Grumman Corporation price-eps-surprise | Northrop Grumman Corporation Quote
Defense Systems Reflects Solid Growth Potential
Higher sales volumes from the Sentinel program and certain military ammunition programs are likely to have aided the Defense unit’s revenue performance.
The Zacks Consensus Estimate for Defense Systems’ revenues is pegged at $1,860.2 million, indicating an increase of 22.9% from the year-ago quarter’s number.
Mission Systems to Remain Solid
Higher sales volume from the Scalable Agile Beam Radar program, ramp-up on electronic warfare self-protection and international ground-based radar programs, as well as higher volume on marine systems programs, are expected to have favorably impacted Mission Systems’ revenue performance.
The Zacks Consensus Estimate for Mission Systems’ second-quarter revenues is pegged at $2,904.7 million, indicating growth of 4.7% from the year-ago quarter’s actual.
Space Systems to Reflect Dismal Performance
The Space Systems segment’s revenues are likely to have been adversely impacted primarily due to the wind-down of the company’s work on the restricted space and NGI programs, as well as decreased Commercial Resupply Services missions, Space Development Agency satellite programs and other restricted space programs.
The Zacks Consensus Estimate for Space Systems’ revenues is pegged at $2,704.8 million, implying a decrease of 24.3% from the year-ago quarter’s number.
Backlog Projections
Our model estimates NOC’s second-quarter backlog to increase 15% year over year to $95.61 billion.
Q2 Estimates
With three of NOC’s segments likely to report a year-over-year improvement in sales, one can be optimistic about its top-line results. However, the decline in the Space Systems segment is likely to have had some adverse impact on its overall revenue performance.
The Zacks Consensus Estimate for sales is pegged at $10.11 billion, indicating a slip of 1.1% from the prior-year figure.
Higher operating income from the Defense Systems segment and an increase in FAS/CAS operating adjustment are likely to have aided its second-quarter 2025 earnings performance.
However, loss provision on the B-21 program at Aeronautics Systems and lower operating income at Space Systems are projected to hurt NOC’s overall bottom-line results, to some extent.
The Zacks Consensus Estimate for NOC’s second-quarter earnings is pegged at $6.70 per share, indicating a rise of 5.4% from the prior-year figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for NOC this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.
Earnings ESP: NOC has an Earnings ESP of +3.10%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: NOC currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Below, we have mentioned the following players from the same industry that have the right combination of elements to beat on earnings in the upcoming releases.
Huntington Ingalls Industries ((HII - Free Report) ) is set to report second-quarter 2025 earnings on July 31, 2025, before market open. It has an Earnings ESP of +0.56% and a Zacks Rank of 1 at present.
The Zacks Consensus Estimate for HII’s earnings is pegged at $3.22 per share. The consensus estimate for its sales is pegged at $2.93 billion.
General Dynamics ((GD - Free Report) ) is set to report its second-quarter 2025 results on July 23, before market open. It has an Earnings ESP of +4.08% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for GD’s earnings is pegged at $3.56 per share, indicating year-over-year growth of 9.2%. The consensus estimate for its sales is pegged at $12.22 billion, indicating year-over-year growth of 2%.
Textron Inc. ((TXT - Free Report) ) is set to report its second-quarter results on July 24, before market open. It has an Earnings ESP of +0.58% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for TXT’s earnings is pegged at $1.44 per share. The consensus estimate for its sales is pegged at $3.60 billion, indicating year-over-year growth of 2.2%.