Investing.com -- Northrop Grumman (NYSE:NOC) reported mixed results for the fiscal third quarter, with earnings exceeding expectations while revenue numbers fell short. The company also raised its operating income and adjusted earnings guidance for the full year.
Specifically, the aerospace and defense company reported Q3 earnings per share (EPS) of $7.00, topping the consensus estimate of $6.08.
Revenue came in at $10 billion, a 2.3% year-over-year increase, but below the expected $10.18 billion.
Operating income was reported at $1.12 billion, up 10% year-over-year and above the $1.05 billion estimated by analysts.
In terms of segment performance, Aeronautics Systems sales totaled $2.88 billion, up 4% year-over-year but slightly below the $2.92 billion estimate.
Defense Systems saw a significant 47% growth, with sales of $2.08 billion, although this missed the estimate of $2.28 billion.
Mission Systems reported sales of $2.82 billion, a 7.4% year-over-year increase, aligning with analyst expectations.
Meanwhile, Space Systems sales reached $2.87 billion, down 18% year-over-year, but above the $2.82 billion estimate.
The company’s backlog stood at $84.80 billion at the end of the quarter.
Looking ahead, Northrop raised its 2024 segment operating income guidance to $4.52 billion - $4.57 billion, up from the previous range of $4.50 billion – $4.57 billion.
Adjusted EPS guidance was also raised to $25.65 - $26.05, compared to the previous $24.90 - $25.30.
“Based on the strength of our year-to-date results and our positive outlook for the future, we are once again raising our 2024 guidance. Sales remain on target for 5% growth this year and the deliberate actions we are taking to improve margin rates have resulted in further expansion this quarter,” said Kathy Warden, chair, CEO and president of Northrop Grumman.
“With our investments to create capacity and focus on performance, we continue to deliver value for our customers and our shareholders. As we look toward 2025, our outlook includes continued top line growth, margin rate expansion and greater than 20% free cash flow growth.”