Northrop Grumman Tops Q4 Backed By Robust Demand; Issues Upbeat Guidance

Anusuya Lahiri
1 min read
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In this article:

  • Northrop Grumman Corp (NYSE: NOC) reported a fourth-quarter FY22 sales growth of 16% year-over-year to $10.03 billion, beating the consensus of $9.66 billion.

  • Adjusted EPS of $7.50 beat the consensus of $6.57.

  • Sales by segments: Aeronautics Systems $2.76 billion (+5% Y/Y), Defense Systems $1.66 billion (+20% Y/Y), Mission Systems $2.93 billion (+16% Y/Y), and Space Systems $3.28 billion (+23% Y/Y).

  • NOC stated that Q4 sales reflect strong demand, the timing of material receipts, and continued improvement in labor availability trends.

  • Total operating income was 1.14 billion (+17% Y/Y), and the margin expanded by 40 bps to 9%, while the segment operating margin was flattish at 11.3%.

  • Q4 net awards totaled $9.1 billion, and the backlog totaled $78.7 billion.

  • Northrop Grumman generated $1.67 billion in adjusted free cash flow, up 136% Y/Y.

  • FY23 Outlook: Northrop Grumman expects sales of $38.0 billion-$38.4 billion, above the consensus of $37.86 billion. The company sees adjusted EPS of $21.85 -$22.45 versus the consensus of $22.30.

  • The company expects a strong multi-year cash flow outlook with over 20% CAGR through 2025

  • Price Action: NOC shares traded higher by 1.33% at $469.45 on the last check Thursday.

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This article originally appeared on Benzinga.com

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