Workflow
Northrop Grumman Misses Q1 Earnings Estimates, Lowers '25 EPS View
NOCNorthrop Grumman(NOC) ZACKS·2025-04-22 17:30

Core Viewpoint - Northrop Grumman Corporation (NOC) reported disappointing first-quarter 2025 financial results, with adjusted earnings and total sales missing consensus estimates, primarily due to increased manufacturing costs and lower sales in key segments [1][3][2]. Financial Performance - Adjusted earnings for Q1 2025 were 6.06pershare,missingtheZacksConsensusEstimateof6.06 per share, missing the Zacks Consensus Estimate of 6.21 by 2.4% [1] - GAAP earnings were reported at 3.32pershare,downfrom3.32 per share, down from 6.32 in the same quarter last year [1] - Total sales amounted to 9.47billion,fallingshortoftheZacksConsensusEstimateof9.47 billion, falling short of the Zacks Consensus Estimate of 9.91 billion by 4.4% and declining 6.6% from 10.13billionyear−over−year[3]SegmentPerformance−∗∗AeronauticsSystems∗∗:Salesdecreased7.610.13 billion year-over-year [3] Segment Performance - **Aeronautics Systems**: Sales decreased 7.6% to 2.81 billion, with an operating loss of 183millioncomparedtoanoperatingincomeof183 million compared to an operating income of 306 million in Q1 2024 [5] - Mission Systems: Sales increased 5.6% to 2.81billion,butoperatingincomedecreased4.52.81 billion, but operating income decreased 4.5% to 361 million [6] - Defense Systems: Sales rose 3.9% to 1.81billion,withoperatingincomeimproving14.71.81 billion, with operating income improving 14.7% to 179 million [7] - Space Systems: Sales declined 18.5% to 2.57billion,withoperatingincomedecreasing14.22.57 billion, with operating income decreasing 14.2% to 283 million [8] Operational Metrics - Total operating income for the quarter was 573million,significantlydownfrom573 million, significantly down from 1,071 million in the prior-year quarter [10] - The company's total backlog increased to 92.80billionfrom92.80 billion from 91.47 billion at the end of Q4 2024 [4] Financial Condition - Cash and cash equivalents as of March 31, 2025, were 1.69billion,downfrom1.69 billion, down from 4.35 billion at the end of 2024 [11] - Long-term debt decreased to 14.17billionfrom14.17 billion from 14.69 billion [11] - Net cash outflow from operating activities was 1.57billion,comparedto1.57 billion, compared to 0.71 billion a year ago [11] Guidance - Northrop Grumman expects revenues for 2025 to be in the range of 42.00−42.00-42.50 billion, with a consensus estimate of 42.27billion[12]−Adjustedearningsguidancewasloweredtoarangeof42.27 billion [12] - Adjusted earnings guidance was lowered to a range of 24.95-25.35pershare,downfromthepreviousguidanceof25.35 per share, down from the previous guidance of 27.85-28.25[13]−Thecompanystillprojectsadjustedfreecashflowbetween28.25 [13] - The company still projects adjusted free cash flow between 2.85-$3.25 billion [13]