Financial Results - Northrop Grumman Corporation has released its fourth quarter and full-year 2024 financial results [1] - The earnings release is available in the company's Form 8-K filing and on the investor relations website [1] Earnings Conference Call - Northrop Grumman will webcast its earnings conference call at 9 a.m. Eastern time [2] - A live audio broadcast of the conference call can be accessed on the investor relations website [2] Company Overview - Northrop Grumman is a leading global aerospace and defense technology company [3] - The company provides pioneering solutions that equip customers with necessary capabilities for global connectivity and protection [3] - Northrop Grumman is committed to solving customers' toughest problems and pushing the boundaries of human exploration [3]

Financial Performance - Fourth quarter 2024 sales were $10.7 billion, comparable to Q4 2023, with full-year sales increasing 4% to $41.0 billion from $39.3 billion in 2023[2]. - Fourth quarter 2024 net earnings were $1.3 billion, or $8.66 per diluted share, while full-year net earnings reached $4.2 billion, or $28.34 per diluted share[3]. - Total sales for 2024 reached $41,033 million, an increase from $39,290 million in 2023, representing a growth of approximately 4.4%[64]. - Operating income for 2024 was $4,370 million, significantly higher than $2,537 million in 2023, marking an increase of 72.5%[64]. - Net earnings for 2024 were $4,174 million, compared to $2,056 million in 2023, reflecting a growth of 102%[64]. - Basic earnings per share for 2024 were $28.39, up from $13.57 in 2023, indicating a year-over-year increase of 109%[64]. Cash Flow and Shareholder Returns - Operating cash flow for 2024 was $4.4 billion, with free cash flow of $2.6 billion, representing a 25% increase from the previous year[4]. - The company returned $3.7 billion to shareholders through share repurchases and dividends in 2024[4]. - Cash provided by operating activities increased by $148 million, or 6 percent, in the fourth quarter 2024[20]. - The company reported a net cash provided by operating activities of $4,388 million in 2024, compared to $3,875 million in 2023, an increase of 13.2%[71]. - The company repurchased common stock worth $2,514 million in 2024, compared to $1,500 million in 2023, indicating a 67.6% increase[71]. Sales Growth and Segment Performance - 2024 sales growth was driven by a 12% increase in Aeronautics Systems, with total sales growth of $1.7 billion attributed to higher sales in Mission and Defense Systems[11]. - Fourth quarter 2024 sales for Aeronautics Systems increased by $310 million, or 11 percent, driven by B-21 production[28]. - Fourth quarter 2024 sales for Defense Systems increased by $102 million, or 5 percent, primarily due to the ramp-up on Sentinel[33]. - Fourth quarter 2024 sales for Mission Systems increased by $81 million, or 3 percent, due to higher volume on advanced microelectronics programs[38]. - Fourth quarter 2024 sales for Space Systems decreased by $388 million, or 13 percent, primarily due to the wind-down of restricted space programs[44]. Backlog and Future Guidance - The company reported a book-to-bill ratio of 1.23 and a record backlog of $91.5 billion[4]. - Fourth quarter 2024 net awards totaled $17.3 billion, with a backlog of $91.5 billion[21]. - The company projects 2025 sales guidance between $42,000 million and $42,500 million, with segment operating income expected between $4,650 million and $4,800 million[51]. - Free cash flow guidance for 2025 is estimated to be between $2,850 million and $3,250 million[51]. - Aeronautics Systems segment sales are projected to be in the low $13 billion range, with an operating margin rate of approximately 9%[51]. - Defense Systems segment sales are expected to be in the low $8 billion range, also with an operating margin rate of around 9%[51]. - Mission Systems segment sales are anticipated to be around $12 billion, with a higher operating margin rate of 14%[51]. Operational Efficiency - The operating margin rate improved to 10.6% in 2024, up from 6.5% in 2023, reflecting a significant increase in operating income[13]. - Fourth quarter 2024 segment operating income increased by $1.6 billion, with a segment operating margin rate of 11.2 percent[1]. - The fourth quarter 2024 operating income increased by $1.5 billion, primarily due to higher income at Aeronautics Systems[12]. Tax and Financial Position - The effective tax rate (ETR) for the fourth quarter 2024 decreased to 18.5 percent from 29.3 percent in the fourth quarter of 2023[15]. - Total assets increased to $49,359 million in 2024 from $46,544 million in 2023, representing a growth of 6.1%[68]. - Long-term debt increased to $14,692 million in 2024 from $13,786 million in 2023, reflecting a rise of 6.6%[71]. - Total current liabilities increased to $14,128 million in 2024 from $11,942 million in 2023, a rise of 18.3%[71]. - Retained earnings grew to $15,297 million in 2024 from $14,773 million in 2023, an increase of 3.5%[71]. Risks and Strategic Changes - The company acknowledges potential risks including inflationary pressures, labor shortages, and supply chain challenges that may impact future performance[58]. - The company plans to realign the Strike and Surveillance Aircraft Solutions business unit from Defense Systems to Aeronautics Systems effective January 1, 2025[25]. - The company plans to realign its segments effective July 1, 2024, which will impact future reporting[84]. - Further realignment is scheduled for January 1, 2025, affecting the Strike and Surveillance Aircraft Solutions business unit[85]. - The company emphasizes the importance of free cash flow for planning acquisitions, dividends, and stock repurchases[90]. - Organic sales growth is highlighted as a key measure, excluding sales from the Training Services business[91].

Earnings Report and Estimates - Northrop Grumman Corporation (NOC) is scheduled to report fourth-quarter 2024 results on Jan 30, before market open [1] - The company delivered a four-quarter average earnings surprise of 9.91% [2] - The Zacks Consensus Estimate for sales is pegged at $11.03 billion, indicating an increase of 3.7% from the prior-year figure [8] - The Zacks Consensus Estimate for earnings is pegged at $6.27 per share, which is in line with the prior-year figure [9] Segment Performance Aeronautics Systems - Higher F-35 production volume, increased E-2 fleet sustainment and modernization work, higher Triton LRIP production volume, and an increase in Global Hawk sustainment activities are likely to have boosted the fourth-quarter revenue performance [3] - The Zacks Consensus Estimate for the segment's revenues is pegged at $3,199.4 million, indicating a rise of 9.9% from the year-ago quarter's figure [3] Defense Systems - Higher sales volumes from the Sentinel program and international ammunition sales, as well as ramp-up on the Stand-in Attack Weapon program, are likely to have aided the Defense unit's revenue performance [4] - The Zacks Consensus Estimate for Defense Systems' revenues is pegged at $2,584.4 million, indicating an increase of 57.1% from the year-ago quarter's number [4] Mission Systems - Higher sales volume from restricted advanced microelectronics programs, as well as advanced technology programs, is expected to have favorably impacted Mission Systems' revenue performance [5] - The Zacks Consensus Estimate for Mission System's fourth-quarter revenues is pegged at $3,238.4 million, indicating growth of 5.7% from the year-ago quarter's actual [5] Space Systems - The Space System segment's revenues are likely to have been adversely impacted primarily due to the wind-down of the company's work on the restricted space and NGI programs [6] - The Zacks Consensus Estimate for Space System's revenues is pegged at $2,741 million, implying a decrease of 23.9% from the year-ago quarter's number [6] Backlog and Earnings Potential - The model estimates NOC's fourth-quarter backlog to decline 3% year over year to $81.71 billion [7] - A solid top-line improvement in three of its business segments, along with favorable operating margin performance expected from the Defense Systems and Mission Systems units, is likely to have aided the overall earnings [8][9] - The proven model predicts an earnings beat for NOC this time, with an Earnings ESP of +1.37% and a Zacks Rank of 3 [10][11] Other Sector Players - Leidos Holdings, Inc (LDOS) is set to report fourth-quarter 2024 earnings on Feb 11, 2025, with an Earnings ESP of +12.08% and a Zacks Rank of 2 [12] - The Zacks Consensus Estimate for LDOS' earnings is pegged at $2.18 per share, with sales estimated at $4.12 billion, indicating year-over-year growth of 3.6% [13] - Huntington Ingalls Industries, Inc (HII) is set to report its fourth-quarter 2024 results on Feb 6, with an Earnings ESP of +8.35% and a Zacks Rank of 3 [13] - The Zacks Consensus Estimate for HII's earnings is pegged at $3.28 per share, with sales estimated at $3.03 billion [13] - CurtissWright (CW) is set to report its fourth-quarter results on Feb 12, with an Earnings ESP of +1.24% and a Zacks Rank of 3 [14] - The Zacks Consensus Estimate for CW's earnings is pegged at $3.08 per share, with sales estimated at $785.5 million [14]

Core Insights - Northrop Grumman has selected Planisware Enterprise as its enterprise-wide program management system to enhance innovation and operational excellence [1] - Planisware aims to support Northrop Grumman's digital transformation by streamlining portfolio management technology across the entire product lifecycle [2] Company Overview - Planisware is a leading B2B provider of SaaS in the rapidly growing Project Economy, focusing on transforming how organizations strategize, plan, and deliver projects [3] - The company has over 700 employees across 14 offices and serves approximately 600 clients in more than 30 countries, including large international companies, medium-sized businesses, and public sector entities [4] - Planisware is listed on the regulated market of Euronext Paris under the ticker symbol "PLNW" [4]

Core Viewpoint - Northrop Grumman (NOC) has reached a significant support level and shows potential for investors from a technical perspective, having recently broken through the 200-day moving average, indicating a long-term bullish trend [1]. Technical Analysis - The 200-day simple moving average is a useful tool for determining long-term market trends, moving in conjunction with longer-term price performance and serving as a support or resistance level [2]. - NOC has experienced a rally of 7.1% over the past four weeks, and currently holds a Zacks Rank of 3 (Hold), suggesting it may be on the verge of another upward movement [2]. Earnings Estimates - Positive earnings estimate revisions for NOC strengthen the bullish case, with no estimates decreasing in the past two months and one estimate increasing, leading to a rise in the consensus estimate [3]. - The combination of favorable earnings estimate revisions and the achievement of a key technical level indicates that NOC may offer further gains in the near future [3].

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Northrop Grumman Corporation (NOC) Contract and Market Position - Northrop Grumman secured a $481 3 million contract for updates and improvements to the Integrated Air and Missile Defense Battle Command System's software, awarded by the Army Contracting Command, Redstone Arsenal, AL [1] - The work will be performed in McLean, VA; Huntsville, AL; Linthicum Heights, MD; and Orlando, FL, and includes foreign military sales to Poland [1] - NOC's IBCS is a key component of the US Army's air and missile defense modernization strategy, indicating strong demand in the missile defense systems market [3] - NOC stock has gained 7 9% in the past six months, outperforming the industry's 2 6% decline [9] Global Missile and Missile Defense Systems Market Growth - Rising military conflicts, terrorism, and border disputes have increased global focus on national security, particularly missile defense systems [2] - Mordor Intelligence forecasts a 5% compound annual growth rate for the global missiles and missile defense systems market from 2024 to 2029 [2] - Northrop Grumman is well-positioned to benefit from this growth due to its advanced missile defense technologies, including command systems, directed energy weapons, and sensors [3] Opportunities for Other Defense Companies - RTX Corporation (RTX) is known for its Patriot and SM-6 missile defense systems, with a long-term earnings growth rate of 10 2% and projected 2024 sales growth of 7 2% [4][5] - The Boeing Company (BA) manufactures missile defense systems like the Ground-based Midcourse Defense and Aegis Ballistic Missile Defense, with a long-term earnings growth rate of 19 3% and projected 2025 sales growth of 22 5% [6] - Lockheed Martin Corporation (LMT) produces missile programs such as the Patriot Advanced Capability-3 and Terminal High-Altitude Area Defense, with a long-term earnings growth rate of 4 5% and projected 2024 sales growth of 5 5% [7][8] NOC Stock and Industry Position - NOC currently holds a Zacks Rank 3 (Hold) [10]

FALLS CHURCH, Va., Dec. 19, 2024 (GLOBE NEWSWIRE) -- Northrop Grumman Corporation (NYSE:NOC) announced today that its fourth quarter and full-year 2024 financial results will be posted on its investor relations website on January 30, 2025. Prior to the market opening, the company will issue an advisory release notifying the public of the availability of the complete and full text earnings release on the company's website at http://investor.northropgrumman.com. The company's fourth quarter and 2024 conferenc ...

Northrop Grumman Corporation (NOC) is set to expand its share repurchase program by $3 billion, following the recent approval from its management. This would bring the company’s total outstanding amount available for repurchase to approximately $4.2 billion. The company will buy back its shares occasionally, based on market conditions and management's decisions, either on the stock market or through private deals.What’s Favoring NOC Stock?For a defense contractor like Northrop Grumman, factors such as stead ...