Northrop increases adjusted earnings guidance after strong defense order intake

Northrop Grumman ($NOC) reported quarterly sales of $11.1 billion, up 7%, and net earnings of approximately $1.1 billion. Earnings per share increased to $7.89 from $7.67. New awards totaled $16.4 billion, lifting backlog to $109.6 billion. Aeronautics sales grew 14% and defense sales increased 12%, contributing to the company’s expansion despite differing conditions across its operating businesses.

The company raised its full-year mark-to-market-adjusted earnings forecast to $29.35–29.75 per share from $28.60–29.10. It retained sales guidance of $43.75–44.25 billion and adjusted free-cash-flow guidance of $3.1–3.5 billion. The higher earnings range does not imply that every financial target was increased. Northrop also qualified its outlook against a prolonged government shutdown or spending reductions, factors that could affect contract activity, payment timing and the conversion of backlog into revenue.

Sources:

• Northrop Grumman — SEC earnings exhibit
• Issuer release — timestamped reproduction
• Northrop Grumman — issuer earnings release