|
|
|
|
|||||
|
|
|
Northrop Grumman Corporation NOC reported first-quarter 2025 adjusted earnings of $6.06 per share, which missed the Zacks Consensus Estimate of $6.21 by 2.4%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Including the one-time impact of B-21 LRIP loss provision, the company reported GAAP earnings of $3.32 per share, which deteriorated from the year-ago quarter’s reported number of $6.32.
The year-over-year decline can be attributed to a pre-tax loss that Northrop Grumman incurred in the first quarter, owing to higher manufacturing costs primarily resulting from a process change made to enable an accelerated production ramp, as well as increases in the projected cost and quantity of general procurement materials.
NOC’s total sales of $9.47 billion in the first quarter missed the Zacks Consensus Estimate of $9.91 billion by 4.4%. The top line also declined 6.6% from $10.13 billion reported in the year-ago quarter. This decline can be attributed to lower sales from its Aeronautics Systems and Space Systems segments.
Northrop Grumman Corporation price-consensus-eps-surprise-chart | Northrop Grumman Corporation Quote
The company’s total backlog was $92.80 billion at the end of the first quarter compared with $91.47 billion at the end of fourth-quarter 2024.
Aeronautics Systems: This segment’s sales of $2.81 billion declined 7.6% year over year, due to lower sales from B-21 and other restricted programs, as well as a decrease in F-35 sustainment volume, partly influenced by the timing of materials.
The unit’s operating loss totaled $183 million against the operating income of $306 million in the first quarter of 2024. Its operating profit margin also deteriorated from 10.1% to an operating loss margin of 6.5%.
Mission Systems: Sales in this segment increased 5.6% to $2.81 billion. This was driven by higher sales from the Scalable Agile Beam Radar (SABR) program, ramp-up on electronic warfare self-protection and international ground-based radar programs and higher volume of marine systems programs.
The unit’s operating income decreased 4.5% to $361 million. The operating margin contracted 130 basis points (bps) to 12.9%.
Defense Systems: This segment’s sales rose 3.9% year over year to $1.81 billion. The improvement was driven by the continued ramp-up of the Sentinel program and higher volume of certain military ammunition programs.
The unit’s operating income improved 14.7% year over year to $179 million. The operating margin expanded 90 bps to 9.9%.
Space Systems: Sales in this segment declined 18.5% to $2.57 billion due to the winding down of work on the restricted space and NGI programs, as well as lower volume Commercial Resupply Services (CRS) missions, Space Development Agency (SDA) satellite programs and other restricted space programs.
The segment’s operating income decreased 14.2% year over year to $283 million. The operating margin, however, expanded 50 bps to 11%.
Total operating income during the quarter totaled $573 million, reflecting a significant decline from $1,071 million in the prior-year quarter. This decline was due to lower operating income at Aeronautics Systems, Mission Systems and Space Systems.
Northrop Grumman’s cash and cash equivalents as of March 31, 2025, totaled $1.69 billion, down from $4.35 billion as of Dec. 31, 2024.
Long-term debt (net of the current portion) amounted to $14.17 billion compared with $14.69 billion as of Dec. 31, 2024.
Net cash outflow from operating activities totaled $1.57 billion during the first three months of 2025 compared with $0.71 billion a year ago.
The company partially reiterated its 2025 guidance. It still expects its revenues to be in the range of $42.00-$42.50 billion. The Zacks Consensus Estimate for sales is pegged at $42.27 billion, higher than the midpoint of the company’s guided range.
NOC now expects adjusted earnings to be in the band of $24.95-$25.35 per share, lower than its earlier guided band of $27.85-$28.25. The consensus estimate for earnings is pegged at $28.08 per share, above the company’s new guided range.
Northrop Grumman still projects to generate adjusted free cash flow in the band of $2.85-$3.25 billion.
NOC currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Boeing Company BA is set to report first-quarter 2025 earnings on April 23, 2025, before market open.
The Zacks Consensus Estimate for BA’s loss is pegged at $1.54 per share. The consensus estimate for its sales is pegged at $19.29 billion, indicating year-over-year growth of 16.4%.
Embraer ERJ is set to report its first-quarter 2025 results soon.
The Zacks Consensus Estimate for ERJ’s earnings is pegged at 28 cents per share. The consensus estimate for its sales is pegged at $1.12 billion, indicating year-over-year growth of 24.7%.
General Dynamics Corporation GD is set to report first-quarter 2025 results on April 23, 2025, before market open.
The Zacks Consensus Estimate for GD’s earnings is pegged at $3.47 per share. The consensus estimate for its sales is pegged at $11.94 billion, indicating year-over-year growth of 11.3%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).
| 1 hour | |
| 1 hour | |
| 1 hour | |
| 2 hours | |
| 2 hours | |
| 2 hours | |
| 2 hours | |
| 3 hours | |
| 4 hours | |
| 4 hours |
Northrop Grumman Trims 2025 Outlook Following Slower Sales, Higher Bomber-Program Costs
NOC -12.66%
The Wall Street Journal
|
| 4 hours | |
| 5 hours | |
| 5 hours | |
| 5 hours | |
| 5 hours |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, backtesting, and much more.
Learn more about FINVIZ*Elite