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I have to say, although I have seen some negative outliers, I'm very happy with the way things are going so far in this earnings season. One reason is the turnaround of the defense sector, a sector that enjoys a weighting of roughly 20% in my dividend growth portfolio. As most of my readers will know, I started to aggressively buy defense contractors when the pandemic started to fade, as I liked the mix of anti-cyclical demand, innovation-driven growth, and consistent dividend growth and buybacks. Unfortuna ...

A useful tool for traders and analysts, the 200-day simple moving average helps determine long-term market trends for stocks, commodities, indexes, and other financial instruments. It moves higher or lower in conjunction with longer-term price performance, and serves as a support or resistance level. Investors may want to watch NOC for more gains in the near future given the company's key technical level and positive earnings estimate revisions. Northrop Grumman (NOC) is looking like an interesting pick fro ...

Financial Performance - Second quarter 2024 sales increased by $642 million, or 7%, driven by higher sales across all four sectors, with Aeronautics Systems growing by 14%[99] - Year-to-date 2024 sales rose by $1.5 billion, or 8%, with Aeronautics Systems showing a 16% increase[101] - Second quarter 2024 operating income increased by $123 million, or 13%, with an operating margin rate of 10.7%, up from 10.1%[102] - Year-to-date 2024 operating income rose by $247 million, or 13%, with an operating margin rate of 10.6%, compared to 10.1% in the prior year[103] - Second quarter 2024 net earnings increased by $128 million, or 16%, primarily due to higher operating income[104] - Year-to-date 2024 net earnings rose by $230 million, or 14%, driven by increased operating income and a higher non-operating FAS pension benefit[104] - Second quarter 2024 diluted earnings per share increased by 19%, reflecting a 16% rise in net earnings[105] - Year-to-date 2024 diluted earnings per share increased by 17%, supported by a 14% increase in net earnings[105] Segment Performance - Second quarter 2024 segment operating income increased by $49 million, or 5%, primarily due to higher sales[112] - Year to date 2024 segment operating income increased by $151 million, or 7%, primarily due to higher sales[113] - Second quarter 2024 sales increased by $368 million, or 14%, driven by higher restricted sales and increased F-35 sustainment and production work[118] - Year to date 2024 sales increased by $822 million, or 16%, primarily due to higher restricted sales and increased volume on various programs[119] - Defense Systems segment sales increased by $93 million, or 7%, primarily due to ramp-up on military ammunition programs[123] - Mission Systems segment sales increased by $132 million, or 5%, primarily due to higher volume on restricted advanced microelectronics programs[129] - Space Systems segment sales increased by $85 million, or 2%, with an operating income increase of $41 million, or 14%[134] Cash Flow and Backlog - The company had $3.3 billion in cash and cash equivalents as of June 30, 2024, with no borrowings outstanding under its credit facilities[155] - As of June 30, 2024, total backlog was $83.118 billion, a decrease of 1% from $84.230 billion as of December 31, 2023[154] - Year-to-date 2024 net cash provided by operating activities reached $719 million, up 231% from $217 million in the same period last year[159] - Free cash flow for the first half of 2024 was $129 million, a significant increase of 133% compared to a negative $396 million in the same period of 2023[161] - Year-to-date 2024 capital expenditures were $590 million, slightly down by 4% from $613 million in the same period of 2023[161] - Year-to-date 2024 net cash used in investing activities decreased by $22 million, or 4%, compared to the same period in 2023, primarily due to lower capital expenditures[162] - Year-to-date 2024 net cash provided by financing activities decreased by $1.2 billion, or 97%, compared to the same period in 2023, mainly due to increased share repurchases[163] Market and Economic Environment - The ongoing global security environment, including conflicts in Ukraine and the Middle East, is expected to drive increased demand for defense products and services[92] - The global economic environment has faced challenges such as inflation and supply chain disruptions, impacting costs and performance[94] - The company expects a reduction of approximately $350 million in cash from operations for 2024 due to federal tax payments related to IRC Section 174[159] - The ongoing conflict in Ukraine has increased demand for certain goods and services, although the company does not anticipate significant adverse financial impacts directly from the conflict[92] Risks and Challenges - Forward-looking statements indicate potential risks including dependence on U.S. government funding and macroeconomic pressures[167] - Company faces significant risks related to supply chain disruptions and inflationary pressures impacting costs and performance[173] - Legal and regulatory risks include investigations and compliance with procurement laws and regulations[173] - The company is exposed to risks from international operations, including geopolitical and economic factors[173] - Future investment performance of plan assets and changes in marketable securities valuation are potential risk factors[173] - The company has not reported any material changes to market risks since the 2023 Annual Report on Form 10-K[169] Innovation and Workforce - The company is focused on innovation and developing new technologies to meet customer needs and enhance competitive positioning[91] - The company emphasizes the importance of innovation and development of new products and technologies to meet customer needs[173] - The company is focused on attracting and retaining a qualified workforce to meet performance obligations[173]

Northrop Grumman Corporation. (NYSE:NOC) Q2 2024 Earnings Conference Call July 25, 2024 9:00 AM ET Company Participants Todd Ernst - VP, IR Kathy Warden - Chair, CEO and President Dave Keffer - CFO Conference Call Participants Kristine Liwag - Morgan Stanley Scott Deuschle - Deutsche Bank Rob Stallard - Vertical Research Jason Gursky - Citi Sheila Kahyaoglu - Jefferies Seth Seifman - JPMorgan Gavin Parsons - UBS Cai von Rumohr - TD Cowen Doug Harned - Bernstein Myles Walton - Wolfe Research Matt Akers - Wel ...

Backlog Count The unit's operating income totaled $295 million compared with $278 million in the second quarter of 2023. Its operating margin, however, deteriorated 70 basis points (bps) to 10%. The unit's operating income rose 23% year over year to $206 million. The operating margin expanded 180 bps to 13.5%. Financial Condition Total Sales Aeronautics Systems: This segment's sales of $2.96 billion rose 14.2% year over year due to higher restricted sales, higher volumes from the Triton program, as well as ...

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Sales- Mission Systems: $2.77 billion versus the five-analyst average estimate of $2.80 billion. The reported number represents a year-over-year change of +5%. Sales- Aeronautics Systems: $2.96 billion compared to the $2.80 billion ...

Northrop Grumman (NOC) came out with quarterly earnings of $6.36 per share, beating the Zacks Consensus Estimate of $5.95 per share. This compares to earnings of $5.34 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 6.89%. A quarter ago, it was expected that this defense contractor would post earnings of $5.83 per share when it actually produced earnings of $6.32, delivering a surprise of 8.40%. Over the last four quarters, t ...

News Release Contact: Cindy Anderson (Media) 571-550-1814 cindy.anderson@ngc.com • Net awards of $15.1 billion; book to bill of 1.5x • Sales increase 7 percent to $10.2 billion • Operating income increases 13 percent driven by strong performance and cost efficiencies • Diluted earnings per share increase 19 percent to $6.36 • Operating cash flow of $1.4 billion; free cash flow increases 80 percent to $1.1 billion • Company raises 2024 sales guidance to $41.0 - $41.4 billion and MTM-adjusted EPS guidance to ...

Northrop Grumman Corporation (NOC) is scheduled to report second-quarter 2024 results on Jul 25, before market open. The company delivered a four-quarter average earnings surprise of 6.09%. The strong revenue performance across each of its segments is likely to have contributed to its earnings. However, high interest expenses might have partially weighed on the bottom line. Aeronautics Systems to Boost the Top Line Higher sales volumes from restricted programs, sustainment and production contracts for F-35 ...