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Here's What Key Metrics Tell Us About Northrop Grumman (NOC) Q2 Earnings

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Northrop Grumman (NOC - Free Report) reported $10.22 billion in revenue for the quarter ended June 2024, representing a year-over-year increase of 6.7%. EPS of $6.36 for the same period compares to $5.34 a year ago.

The reported revenue represents a surprise of +1.45% over the Zacks Consensus Estimate of $10.07 billion. With the consensus EPS estimate being $5.95, the EPS surprise was +6.89%.

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.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Northrop Grumman performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • 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 average estimate based on five analysts. The reported number represents a change of +14.2% year over year.
  • Sales- Intersegment eliminations: -$604 million versus the five-analyst average estimate of -$573.38 million. The reported number represents a year-over-year change of +6.3%.
  • Sales- Space Systems: $3.57 billion compared to the $3.54 billion average estimate based on five analysts. The reported number represents a change of +2.4% year over year.
  • Sales- Defense Systems: $1.51 billion versus the five-analyst average estimate of $1.50 billion. The reported number represents a year-over-year change of +6.6%.
  • Operating income (loss)- Intersegment eliminations: -$83 million compared to the -$79.52 million average estimate based on five analysts.
  • Operating income (loss)- Defense Systems: $204 million versus $183.40 million estimated by five analysts on average.
  • Operating income (loss)- Mission Systems: $361 million versus $417.89 million estimated by five analysts on average.
  • Operating income (loss)- Space Systems: $324 million versus $313.64 million estimated by five analysts on average.
  • Operating income (loss)- Aeronautics Systems: $295 million versus the five-analyst average estimate of $297.96 million.
  • Segment operating income adjustment- Unallocated corporate expenses: -$17 million versus -$61.86 million estimated by four analysts on average.
  • Segment operating income adjustment- FAS/CAS operating adjustment: $6 million versus $7.59 million estimated by three analysts on average.
View all Key Company Metrics for Northrop Grumman here>>>

Shares of Northrop Grumman have returned +2.5% over the past month versus the Zacks S&P 500 composite's -0.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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