Northrop Grumman Expected to Report Lower Q3 EPS Amid Growth

In a recent report, Northrop Grumman Corporation is projected to announce a slight decline in Q3 earnings per share, revealing a profit of $6.05, down from the previous year. Despite this, analysts maintain a moderately bullish stance on the stock, expecting overall fiscal 2024 EPS growth.

Date: 07-10-2024

AI Rating: 6

Northrop Grumman Corporation (NOC) is poised to report its Q3 earnings, with analysts predicting an earnings per share (EPS) of $6.05. This represents a decline of 2.1% from $6.18 in the same quarter last year. However, it is worth noting that the company has a track record of exceeding Wall Street's EPS estimates in its last four quarters, which may build investor confidence.

Last quarter, Northrop Grumman reported adjusted earnings of $6.36 per share, surpassing estimates by an impressive 6.9%. This indicates a strong operational performance, especially given the reported growth in operating income and robust sales across segments. The figures reflect a steady demand for its products and services, particularly in the Aeronautics Systems segment.

Looking ahead to fiscal 2024, analysts expect NOC to achieve an EPS of $25.14, which marks a 7.9% increase from $23.29 in fiscal 2023. This indicates a positive revenue growth trend and could support a bullish investor outlook.

Despite being up 14.7% year-to-date, NOC's performance still lags behind the broader S&P 500 Index's gains of 20.2%. The stock's recent surge of 6.4% following better-than-expected Q2 results and a total sales increase of 7% year-over-year underscores its potential, driven by demand for its advanced aerospace and defense solutions.

Analyst sentiments towards Northrop Grumman are cautiously optimistic, with a “Moderate Buy” consensus rating. Among 18 analysts, the majority favor a “Strong Buy” or “Hold,” indicating confidence in the company’s future performance.

In conclusion, while the anticipated decline in Q3 EPS may initially concern investors, the overall growth forecast and market sentiment suggest a robust outlook for Northrop Grumman’s stock. Continued organic growth in core segments and historical outperformance could position NOC positively moving forward.

Stocks: NOC