FALLS CHURCH, Va. – Northrop Grumman Corporation (NYSE: NYSE:NOC) delivered robust second-quarter results, surpassing Wall Street estimates with a 7% surge in sales and a significant earnings beat.
The defense contractor reported earnings of $6.36 per share, outpacing the analyst consensus of $5.93. Revenue for the quarter also exceeded expectations, coming in at $10.22 billion against the forecasted $10.02 billion.
Kathy Warden, CEO of Northrop Grumman, attributed the strong results to high demand for the company's products and services, leading to a 13% increase in operating income. The company's diverse portfolio and investments in capacity and productivity have paid off, with a notable 19% rise in diluted earnings per share compared to the second quarter of the previous year.
Despite the positive earnings report, Northrop Grumman's stock dipped by 3%, a move driven by the company's raised guidance. For 2024, the company now expects sales to reach between $41.0 and $41.4 billion, with the midpoint of $41.2 billion slightly above the analyst consensus of $41.14 billion.
The adjusted EPS guidance has been lifted to a range of $24.90 to $25.30, with the midpoint surpassing the consensus estimate of $24.76.
The second-quarter performance also represents a solid year-over-year (YoY) growth, with sales increasing from $9.6 billion in the same quarter last year.
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