NYSE$NOC

Northrop Grumman Corp · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Northrop Grumman's Q3 2022 financial results were reported, with sales increasing and EPS impacted by marketable securities.

Northrop Grumman reported a 3% increase in sales to $9.0 billion for Q3 2022 compared to $8.7 billion in Q3 2021. Diluted EPS was $5.89, which included a $0.18 unfavorable impact from marketable securities. The company reaffirmed its 2022 guidance for sales, EPS, and transaction-adjusted free cash flow.

  • Awards totaled $8.7 billion, resulting in a book-to-bill ratio of 0.97 for the quarter and 1.14 year-to-date.
  • Sales increased by 3 percent, reaching $9.0 billion.
  • Diluted EPS was $5.89, including a $0.18 unfavorable impact from marketable securities.
  • Net cash provided by operating activities amounted to $1.3 billion.

Headline financials

Total Revenue

$8.97B

Previous: $8.72B+2.9%
EPS (adj)

$5.89

Previous: $6.63-11.2%
Capital Expenditures

-$803M

Previous: -$682M-17.7%
Free Cash Flow

$112M

Previous: $381M-70.6%
Net Income

$915M

Previous: $1.06B-13.9%
Operating Income

$844M

Previous: $1.04B-19.1%
Gross Profit

$8.97B

Previous: $8.72B+2.9%
Cash & Equivalents

$1.67B

Previous: $4.06B-58.9%
Total Assets

$42.7B

Previous: $42.3B+0.9%
Stock-Based Comp

$30M

Previous: $31M-3.2%

Revenue & EPS history

Northrop Grumman · Revenue · Quarterly

$8.97B

Q3 2022+2.9%vs Q3 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Northrop Grumman · $9.5B total across 4 segments · Q3 2022

  • Space Systems
    $3.16B+18.0%
  • Aeronautics Systems
    $2.54B-6.9%
  • Mission Systems
    $2.46B+0.8%
  • Defense Systems
    $1.35B-4.5%

Forward guidance

The company expects 2022 sales and diluted earnings per share near the low end of our guidance ranges of approximately $36.2 — $36.6 billion and $24.50 — $25.10, respectively. We continue to expect transaction-adjusted free cash flow1 of $1.5 — $1.8 billion based on current tax law, which requires the amortization of current year research and development expenditures over five years.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

-0.2%

Avg return

Earnings day

-0.9%

Avg return

5 days after

+0.3%

Avg return

30 days after

59%

43 / 73 earnings

Positive

+9.5%

Q2 2019

Best reaction

-12.7%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-6.0%-12.5%-16.4%
Q4 2025+2.7%+4.7%+7.6%
Q3 2025-0.4%+0.6%-5.8%
Q2 2025+0.3%+0.7%-1.1%
Q1 2025-12.7%-10.9%-11.0%
Q4 2024+0.4%+0.2%-4.1%
Q3 2024+0.6%-2.4%-3.8%
Q2 2024+8.6%+10.1%+15.2%
Q1 2024+1.2%+2.2%-1.7%
Q4 2023-5.6%-4.4%-0.6%
Q3 2023-2.1%-2.4%-2.4%
Q2 2023-1.6%-2.0%-6.0%
Q1 2023+2.7%-0.1%-2.4%
Q4 2022-5.5%-3.3%+1.6%
Q3 2022+3.2%+0.9%-0.6%
Q2 2022+7.4%+7.9%+8.8%
Q1 2022-0.1%+2.6%+7.0%
Q4 2021-5.7%-8.1%+1.6%
Q3 2021-8.0%-9.0%-8.8%
Q2 2021+0.8%+1.2%+1.3%
Q1 2021+4.7%+8.8%+8.1%
Q4 2020-1.9%+2.7%-0.2%
Q3 2020+0.0%-2.0%-0.6%
Q2 2020+3.1%+3.1%+9.4%
Q1 2020-4.0%-6.4%-2.7%
Q4 2019-2.1%-5.4%-14.1%
Q3 2019-2.3%-1.7%-1.1%
Q2 2019+9.5%+9.7%+11.6%
Q1 2019-4.6%-2.3%+6.7%
Q4 2018-2.8%-0.8%+2.2%
Q3 2018-11.2%-15.7%-12.3%
Q2 2018-6.6%-6.7%-5.7%
Q1 2018-2.2%-5.7%-2.8%
Q4 2017+7.1%+8.3%+12.1%
Q3 2017+1.3%+0.8%+3.0%
Q2 2017-1.2%-0.3%+2.0%
Q1 2017+0.1%-1.5%+3.6%
Q4 2016-0.4%-0.8%+6.2%
Q3 2016+2.7%+4.3%+13.2%
Q2 2016-0.5%-0.8%-2.9%
Q1 2016+1.0%
Q4 2015+3.9%
Q3 2015+5.2%
Q2 2015+7.4%
Q1 2015-4.0%
Q4 2014+3.1%
Q3 2014+2.4%
Q2 2014+1.1%
Q1 2014-0.5%
Q4 2013+3.1%
Q3 2013+5.9%
Q2 2013+1.9%
Q1 2013+4.2%
Q4 2012-2.6%
Q3 2012-0.9%
Q2 2012+1.0%
Q1 2012+1.1%
Q4 2011+0.6%
Q3 2011+1.9%
Q4 2010+1.9%
Q2 2011-7.2%
Q1 2011+1.2%
Q3 2010+1.4%
Q2 2010+0.4%
Q1 2009+3.3%
Q1 2010+0.8%
Q4 2007+1.0%
Q4 2009+1.0%
Q3 2008+0.4%
Q3 2009+0.4%
Q2 2009-6.9%
Q2 2008-6.9%
Q4 2008-6.9%

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