Northrop Grumman
NOC
$548.97 -0.73%
Exchange: NYSE | Sector: Industrials | Industry: Aerospace Defense
Q3 2024
Published: Oct 24, 2024

Earnings Highlights

  • Revenue of $10.00B up 2.3% year-over-year
  • EPS of $7.00 increased by 13.2% from previous year
  • Gross margin of 21.1%
  • Net income of 1.03B
  • "Kathy Warden: 'This is our third quarter in a row of 10% or better margins at [Aeronautics].'" - Kathy Warden
NOC
Northrop Grumman Corporation

Executive Summary

Northrop Grumman Corporation (NOC) delivered strong operational performance in Q3 2024, with revenues reaching $9.996 billion, marking a 6% increase year-to-date. The company's record backlog of $85 billion supports its growth trajectory, reinforcing management's confidence in achieving full-year guidance of 5% growth. Notably, net income surged to $1.026 billion, reflecting a 13% year-over-year increase in earnings per share (EPS) to $7.00. Management emphasized ongoing productivity improvements, resulting in the highest segment operating margin in over two years at 11.5%. The results indicate better-than-expected performance across its segments, particularly in Aeronautics and Mission Systems, underpinned by robust demand driven by increasing geopolitical tensions and growing defense budgets. Forward guidance suggests an optimistic outlook for upcoming quarters, with a focus on capital deployment strategies aimed at returning approximately 100% of free cash flow to shareholders.

Key Performance Indicators

Revenue
Increasing
10.00B
QoQ: -2.17% | YoY: 2.26%
Gross Profit
Increasing
2.11B
21.07% margin
QoQ: -3.88% | YoY: 3.18%
Operating Income
Increasing
1.12B
QoQ: 2.75% | YoY: 10.24%
Net Income
Increasing
1.03B
QoQ: 9.15% | YoY: 9.50%
EPS
Increasing
7.02
QoQ: 10.20% | YoY: 13.23%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q4 2024 10,686.00 8.66 +0.5% View
Q3 2024 9,996.00 7.00 +2.3% View
Q2 2024 10,218.00 6.36 +6.7% View
Q1 2024 10,133.00 6.32 +9.0% View
Q4 2023 10,638.00 -3.54 +6.0% View