NYSE$NOC

Northrop Grumman Corp · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Northrop Grumman's Q3 2024 financial results were reported, featuring increased sales and earnings per share.

Northrop Grumman reported a 2% increase in sales to $10.0 billion for Q3 2024 compared to $9.8 billion in Q3 2023. Net earnings increased to $1.0 billion, or $7.00 per diluted share, from $937 million, or $6.18 per diluted share, in the same period last year. The company also raised its 2024 segment operating income and MTM-adjusted EPS guidance.

  • Net awards totaled $11.7 billion, leading to a record backlog of $85 billion.
  • Q3 sales reached $10.0 billion, with year-to-date sales up by 6 percent.
  • Operating margin rate was 11.2 percent, and the segment operating margin rate was 11.5 percent.
  • Diluted earnings per share increased by 13 percent to $7.00.

Headline financials

Total Revenue

$10B

Previous: $9.78B+2.3%
EPS

$7.00

Previous: $6.18+13.3%
Segment Operating Margin

11.5%

No prior period
Capital Expenditures

-$951M

Previous: -$972M+2.2%
Free Cash Flow

$75M

Previous: -$35M+314.3%
Net Income

$1.03B

Previous: $937M+9.5%
Operating Income

$1.12B

Previous: $1.02B+10.2%
Gross Profit

$10B

Previous: $9.78B+2.3%
Cash & Equivalents

$3.33B

Previous: $2.08B+59.8%
Total Assets

$48.3B

Previous: $44.9B+7.6%
Stock-Based Comp

$26M

Previous: $17M+52.9%

Revenue & EPS history

Northrop Grumman · Revenue · Quarterly

$10B

Q3 2024+2.3%vs Q3 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Northrop Grumman · $10.3B total across 4 segments · Q3 2023

  • Space Systems
    $3.51B+10.8%
  • Aeronautics Systems
    $2.77B+9.0%
  • Mission Systems
    $2.63B+7.0%
  • Defense Systems
    $1.42B+5.7%

Forward guidance

Northrop Grumman raised the lower end of its 2024 segment operating income guidance and increased MTM-adjusted EPS guidance by 75 cents to $25.65 - $26.05.

Tailwinds

  • Sales are expected to be between $41.0 billion and $41.4 billion.
  • Segment operating income is projected to be between $4.525 billion and $4.575 billion.
  • MTM-adjusted EPS is guided to be in the range of $25.65 to $26.05.
  • Free cash flow is estimated to be between $2.25 billion and $2.65 billion.
  • Aeronautics Systems sales are expected to be around $12 billion with an operating margin rate of approximately 10%.

Headwinds

  • Defense Systems sales are expected to be high $8 billion with an operating margin rate of approximately 10%.
  • Mission Systems sales are expected to be mid $11 billion with a high 13% operating margin rate.
  • Space Systems sales are expected to be mid to high $11 billion with a mid to high 10% operating margin rate.
  • Intersegment Eliminations are expected to be around ~$2.7 billion with a low 13% operating margin rate.
  • Guidance does not reflect impacts from any potential continuing resolution, government shutdown, or application of spending limits or other spending cuts.

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 2024

Historical avgQ3 2024

-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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