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Will Segmental Sales Growth Boost Northrop's (NOC) Q2 Earnings?
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Northrop Grumman Corporation (NOC - Free Report) 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 program, as well as higher sales volume for the B-21 program, are likely to have boosted the second-quarter revenue performance of the Aeronautics Systems segment.
The Zacks Consensus Estimate for the segment’s revenues is pegged at $2,799.8 million, indicating a rise of 7.9% from the year-ago quarter’s reported figure.
Northrop Grumman Corporation Price and EPS Surprise
Higher sales volumes from multiple defense and weapons programs, particularly the Guided Multiple Launch Rocket System (“GMLRS”), are likely to have aided the Defense unit’s revenue performance in the second quarter.
The Zacks Consensus Estimate for Defense Systems’ revenues is pegged at $1,497.9 million, indicating an increase of 5.5% from the year-ago quarter’s reported number.
Mission Systems to Remain Solid
Higher sales volume from the advanced microelectronics program is expected to have favorably impacted Mission Systems’ revenue performance in the to-be-reported quarter.
The Zacks Consensus Estimate for Mission System’s second-quarter revenues is pegged at $2,800 million, indicating growth of 6% from the year-ago quarter’s reported actuals.
Space Systems – Another Contributor to Revenues
The Space System segment’s revenues are likely to have been positively impacted by higher volumes from programs like the Space Development Agency (“SDA”) Tranche 2 Transport Layer (T2TL) and Sentinel. However, contract termination for its restricted Space business might have had some adverse impact on this unit’s overall top-line performance.
The Zacks Consensus Estimate for Space System’s second-quarter revenues is pegged at $3,543.5 million, implying an increase of 1.6% from the year-ago quarter’s reported number.
Backlog Projections Show Strength
Our model estimates NOC’s second-quarter backlog to improve 2.7% year over year to $80.93 billion. This indicates strength in its business operations that fuels the demand for its products.
Q2 Estimates
With all four of NOC’s segments likely to report a year-over-year improvement in sales, one can be optimistic about the company’s top-line results.
The Zacks Consensus Estimate for sales is pegged at $10.07 billion, indicating an increase of 5.2% from the prior-year reported figure.
A solid top-line improvement, along with a solid segment operating margin, backed by improving operational efficiencies as well as a lower share count, is likely to have aided the overall earnings of Northrop. However, high interest expenses due to the company’s additional debt issuance in the first quarter of 2024 might have had some adverse impact on the company’s bottom line in the second quarter.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $5.95 per share, implying an improvement of 11.4% from the prior-year reported figure.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Northrop this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Northrop has an Earnings ESP of +1.09% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Below, we have mentioned a few other promising players from the same industry that too have the right combination of elements to beat on earnings this reporting cycle.
The Zacks Consensus Estimate for earnings is pegged at $3.30 per share, indicating an improvement of 22.2% from the prior-year quarter’s reported actuals. The Zacks Consensus Estimate for sales is pegged at $11.52 billion, which implies a 13.5% increase from the top line reported in the prior-year quarter.
Leidos Holdings (LDOS - Free Report) is slated to report second-quarter 2024 results on Jul 30, before market open. It has an Earnings ESP of +1.33% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for earnings is pinned at $2.26 per share, which suggests a 25.6% improvement from the second-quarter 2023 reported figure. The Zacks Consensus Estimate for sales is pegged at $4.01 billion, which implies a 4.5% increase from the top line reported in the prior-year quarter.
Huntington Ingalls Industries (HII - Free Report) is expected to report second-quarter 2024 results on Aug 1, before market open. It has an Earnings ESP of +0.39% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for earnings is pegged at $3.59 per share, which suggests a 9.8% improvement from the second-quarter 2023 reported figure. The Zacks Consensus Estimate for sales is pegged at $2.84 billion, which implies a 1.9% increase from the top line reported in the prior-year quarter.
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Will Segmental Sales Growth Boost Northrop's (NOC) Q2 Earnings?
Northrop Grumman Corporation (NOC - Free Report) 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 program, as well as higher sales volume for the B-21 program, are likely to have boosted the second-quarter revenue performance of the Aeronautics Systems segment.
The Zacks Consensus Estimate for the segment’s revenues is pegged at $2,799.8 million, indicating a rise of 7.9% from the year-ago quarter’s reported figure.
Northrop Grumman Corporation Price and EPS Surprise
Northrop Grumman Corporation price-eps-surprise | Northrop Grumman Corporation Quote
Defense Systems Reflects Solid Growth Potential
Higher sales volumes from multiple defense and weapons programs, particularly the Guided Multiple Launch Rocket System (“GMLRS”), are likely to have aided the Defense unit’s revenue performance in the second quarter.
The Zacks Consensus Estimate for Defense Systems’ revenues is pegged at $1,497.9 million, indicating an increase of 5.5% from the year-ago quarter’s reported number.
Mission Systems to Remain Solid
Higher sales volume from the advanced microelectronics program is expected to have favorably impacted Mission Systems’ revenue performance in the to-be-reported quarter.
The Zacks Consensus Estimate for Mission System’s second-quarter revenues is pegged at $2,800 million, indicating growth of 6% from the year-ago quarter’s reported actuals.
Space Systems – Another Contributor to Revenues
The Space System segment’s revenues are likely to have been positively impacted by higher volumes from programs like the Space Development Agency (“SDA”) Tranche 2 Transport Layer (T2TL) and Sentinel. However, contract termination for its restricted Space business might have had some adverse impact on this unit’s overall top-line performance.
The Zacks Consensus Estimate for Space System’s second-quarter revenues is pegged at $3,543.5 million, implying an increase of 1.6% from the year-ago quarter’s reported number.
Backlog Projections Show Strength
Our model estimates NOC’s second-quarter backlog to improve 2.7% year over year to $80.93 billion. This indicates strength in its business operations that fuels the demand for its products.
Q2 Estimates
With all four of NOC’s segments likely to report a year-over-year improvement in sales, one can be optimistic about the company’s top-line results.
The Zacks Consensus Estimate for sales is pegged at $10.07 billion, indicating an increase of 5.2% from the prior-year reported figure.
A solid top-line improvement, along with a solid segment operating margin, backed by improving operational efficiencies as well as a lower share count, is likely to have aided the overall earnings of Northrop. However, high interest expenses due to the company’s additional debt issuance in the first quarter of 2024 might have had some adverse impact on the company’s bottom line in the second quarter.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $5.95 per share, implying an improvement of 11.4% from the prior-year reported figure.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Northrop this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Northrop has an Earnings ESP of +1.09% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Below, we have mentioned a few other promising players from the same industry that too have the right combination of elements to beat on earnings this reporting cycle.
General Dynamics (GD - Free Report) is set to report second-quarter earnings on Jul 24, before market open. It has an Earnings ESP of +0.08% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for earnings is pegged at $3.30 per share, indicating an improvement of 22.2% from the prior-year quarter’s reported actuals. The Zacks Consensus Estimate for sales is pegged at $11.52 billion, which implies a 13.5% increase from the top line reported in the prior-year quarter.
Leidos Holdings (LDOS - Free Report) is slated to report second-quarter 2024 results on Jul 30, before market open. It has an Earnings ESP of +1.33% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for earnings is pinned at $2.26 per share, which suggests a 25.6% improvement from the second-quarter 2023 reported figure. The Zacks Consensus Estimate for sales is pegged at $4.01 billion, which implies a 4.5% increase from the top line reported in the prior-year quarter.
Huntington Ingalls Industries (HII - Free Report) is expected to report second-quarter 2024 results on Aug 1, before market open. It has an Earnings ESP of +0.39% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for earnings is pegged at $3.59 per share, which suggests a 9.8% improvement from the second-quarter 2023 reported figure. The Zacks Consensus Estimate for sales is pegged at $2.84 billion, which implies a 1.9% increase from the top line reported in the prior-year quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.