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Will Segmental Sales Growth Boost Northrop Stock's Q4 Earnings?
NOCNorthrop Grumman(NOC) ZACKS·2025-01-27 17:06

Earnings Report and Estimates - Northrop Grumman Corporation (NOC) is scheduled to report fourth-quarter 2024 results on Jan 30, before market open [1] - The company delivered a four-quarter average earnings surprise of 9.91% [2] - The Zacks Consensus Estimate for sales is pegged at 11.03billion,indicatinganincreaseof3.711.03 billion, indicating an increase of 3.7% from the prior-year figure [8] - The Zacks Consensus Estimate for earnings is pegged at 6.27 per share, which is in line with the prior-year figure [9] Segment Performance Aeronautics Systems - Higher F-35 production volume, increased E-2 fleet sustainment and modernization work, higher Triton LRIP production volume, and an increase in Global Hawk sustainment activities are likely to have boosted the fourth-quarter revenue performance [3] - The Zacks Consensus Estimate for the segment's revenues is pegged at 3,199.4million,indicatingariseof9.93,199.4 million, indicating a rise of 9.9% from the year-ago quarter's figure [3] Defense Systems - Higher sales volumes from the Sentinel program and international ammunition sales, as well as ramp-up on the Stand-in Attack Weapon program, are likely to have aided the Defense unit's revenue performance [4] - The Zacks Consensus Estimate for Defense Systems' revenues is pegged at 2,584.4 million, indicating an increase of 57.1% from the year-ago quarter's number [4] Mission Systems - Higher sales volume from restricted advanced microelectronics programs, as well as advanced technology programs, is expected to have favorably impacted Mission Systems' revenue performance [5] - The Zacks Consensus Estimate for Mission System's fourth-quarter revenues is pegged at 3,238.4million,indicatinggrowthof5.73,238.4 million, indicating growth of 5.7% from the year-ago quarter's actual [5] Space Systems - The Space System segment's revenues are likely to have been adversely impacted primarily due to the wind-down of the company's work on the restricted space and NGI programs [6] - The Zacks Consensus Estimate for Space System's revenues is pegged at 2,741 million, implying a decrease of 23.9% from the year-ago quarter's number [6] Backlog and Earnings Potential - The model estimates NOC's fourth-quarter backlog to decline 3% year over year to 81.71billion[7]−Asolidtop−lineimprovementinthreeofitsbusinesssegments,alongwithfavorableoperatingmarginperformanceexpectedfromtheDefenseSystemsandMissionSystemsunits,islikelytohaveaidedtheoverallearnings[8][9]−TheprovenmodelpredictsanearningsbeatforNOCthistime,withanEarningsESPof+1.3781.71 billion [7] - A solid top-line improvement in three of its business segments, along with favorable operating margin performance expected from the Defense Systems and Mission Systems units, is likely to have aided the overall earnings [8][9] - The proven model predicts an earnings beat for NOC this time, with an Earnings ESP of +1.37% and a Zacks Rank of 3 [10][11] Other Sector Players - Leidos Holdings, Inc (LDOS) is set to report fourth-quarter 2024 earnings on Feb 11, 2025, with an Earnings ESP of +12.08% and a Zacks Rank of 2 [12] - The Zacks Consensus Estimate for LDOS' earnings is pegged at 2.18 per share, with sales estimated at 4.12billion,indicatingyear−over−yeargrowthof3.64.12 billion, indicating year-over-year growth of 3.6% [13] - Huntington Ingalls Industries, Inc (HII) is set to report its fourth-quarter 2024 results on Feb 6, with an Earnings ESP of +8.35% and a Zacks Rank of 3 [13] - The Zacks Consensus Estimate for HII's earnings is pegged at 3.28 per share, with sales estimated at 3.03billion[13]−CurtissWright(CW)issettoreportitsfourth−quarterresultsonFeb12,withanEarningsESPof+1.243.03 billion [13] - CurtissWright (CW) is set to report its fourth-quarter results on Feb 12, with an Earnings ESP of +1.24% and a Zacks Rank of 3 [14] - The Zacks Consensus Estimate for CW's earnings is pegged at 3.08 per share, with sales estimated at $785.5 million [14]