Northrop Grumman Raises Revenue Outlook as Q3 Earnings Exceed Predictions

Northrop Grumman, a major aerospace and defense technology firm, disclosed on Thursday Oct. 26 an upward revision of its 2023 revenue forecast by $400 million, targeting roughly $39 billion. This follows robust Q3 results that outperformed market predictions.

For Q3 2023, the company noted a 9% sales uplift, reaching $9.8 billion, a jump from 2022’s Q3 figure of $9 billion. This sales surge mirrors the enduring robust demand for Northrop Grumman’s offerings, particularly in segments like space, missile defense, and cyber security.

The net earnings for Q3 2023 stood at $937 million or $6.18 per diluted share, in contrast to Q3 2022’s $915 million or $5.89 per diluted share. These diluted earnings per share surpassed the market consensus of $5.81.

Additionally, Northrop Grumman boasted a record-breaking backlog of $84 billion, combined with Q3 2023’s net awards of $15 billion. This backlog symbolizes the company’s prospective revenue and underscores its long-term growth trajectory.

Kathy Warden, the chairman, CEO, and president of Northrop Grumman, remarked, “Our stellar Q3 results on all fronts epitomize our persistent commitment to top-notch performance and execution. With our top-tier expertise in domains like space, missile defense, cyber, and autonomous systems, we’re in a prime position to consistently deliver value to our clientele and stakeholders.”

The company also reiterated its diluted EPS and free cash flow projections for 2023, aiming for a diluted EPS between $23.15 and $23.65 and a free cash flow ranging from $4.4 billion to $4.6 billion.

Sources: AirGuide Business airguide.info, bing.com, finance.yahoo.com, govconwire.com