Northrop Grumman Corp (NOC) has announced better-than-expected results for the third quarter, with an increase in revenue of $800 million compared to the same period last year. The company’s net income for the quarter rose by 2% to $937 million, or $6.18 per diluted share, up from $915 million, or $5.89 per diluted share, in the year-ago quarter. This exceeded the FactSet consensus estimate of earnings per share of $5.81.
Strong Revenue Growth and Profit Margin
Revenue for Northrop Grumman increased by 9% to $9.8 billion, surpassing the analyst estimate of $9.581 billion. However, the company’s profit was partially impacted by a $1 per share reduction due to lower pension income. On a positive note, Northrop Grumman reported a boost of 44 cents per share from the sale of a minority stake in a business in Australia.
Record Backlog and Promising Sales Forecast
Chief Executive Kathy Warden expressed pride in Northrop Grumman’s record backlog at the end of the quarter. As a result, the company has raised its 2023 sales forecast to approximately $39 billion, which exceeds the analyst estimate of $38.8 billion.
These strong financial results from Northrop Grumman come at a time when its stock has faced a challenging performance in 2023, with a decline of 11.4%. This is in contrast to the S&P 500, which has experienced a 9% rise during the same period.
(Image: Northrop Grumman logo)
