NOC Earnings Prediction
The chart below shows how NOC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, NOC sees a +1.10% change in stock price 10 days leading up to the earnings, and a -1.17% change 10 days following the report. On the earnings day itself, the stock moves by -0.15%. This data can give you a slight idea of what to expect for the next quarter's release.
NOC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
10.69B
0.45%
6.90%
Gross Margin
18.08%
296.49%
-14.19%
Operating Margin
10.19%
376.15%
-9.02%
Net Margin
11.83%
335.19%
15.30%
EPS
8.67
344.23%
23.86%
No Data Available
NOC Earnings Analysis
Northrop Grumman Corp Corporation (NOC.N) Earnings Conference Call
Positive
Strong Backlog and Growth Potential: Record backlog of approximately $91.5 billion with a book to bill ratio of 1.23x, indicating strong future growth potential.
Sales Growth Overview: Sales for 2024 increased by 4.4%, contributing to a 30% organic growth over the last five years.
Free Cash Flow Surge: Free cash flow for 2024 reached over $2.6 billion, a 25% increase year-over-year, aligning with the high end of guidance.
Operating Income and Margin Growth: Segment operating income for 2024 exceeded $4.5 billion, with operating margin expanding to 11.1%, driven by efficiency improvements.
International Business Growth: International book to bill ratio for the year was 1.4x, with expectations for international business growth to outpace U.S. sales in 2025.
Negative
Sales Growth Slowdown: 2024 sales growth was only 4.4%, indicating a slowdown compared to previous years, with the Space segment experiencing a modest decline due to the wind down of a restrictive program.
Space Segment Sales Decline: The Space segment is projected to face a $900 million headwind in 2025 from the wind down of work on restricted space and NGI programs, significantly impacting overall sales growth.
Cash Flow Challenges Ahead: Operating cash flow for 2024 was $4.4 billion, but the expected growth in free cash flow is projected to slow down after 2025, indicating potential challenges in maintaining cash generation levels.
Pension Adjustment Decrease: The total FASCAS pension adjustment is projected at $800 million, down $60 million compared to prior outlooks, suggesting a decrease in expected pension benefits and impacting overall financial performance.
Rising Corporate Unallocated Expenses: Corporate unallocated expenses are expected to rise to $280 million in 2025, up from 2024 levels, reflecting a normalization of expenses that could pressure profitability.
NOC FAQs
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NOC Earning Call Sentiment
Earnings call transcript: Northrop Grumman Q4 2024 beats EPS forecast, stock up
NOC.N
-0.18%Positive
The earnings call reveals strong financial performance with record backlog, increased EPS guidance, and robust free cash flow projections. Despite some unclear responses in the Q&A, the overall sentiment is positive with strong international demand, cost reductions, and expanded margins. The new awards and strategic focus on defense and space systems further enhance the outlook. The positive guidance and strategic initiatives are likely to result in a stock price increase over the next two weeks.
