Northrop Grumman (NYSE:NOC) Issues Earnings Results, Beats Estimates By $0.12 EPS

Northrop Grumman (NYSE:NOC) issued its quarterly earnings data on Thursday. The aerospace company reported $6.39 earnings per share (EPS) for the quarter, topping the consensus estimate of $6.27 by $0.12, Zacks reports. Northrop Grumman had a return on equity of 26.57% and a net margin of 5.79%. Northrop Grumman updated its FY 2025 guidance to 27.850-28.250 EPS.

Northrop Grumman Price Performance

NYSE:NOC traded down $8.52 during trading hours on Thursday, hitting $473.02. The stock had a trading volume of 625,003 shares, compared to its average volume of 829,497. The firm has a market capitalization of $68.92 billion, a price-to-earnings ratio of 29.31, a P/E/G ratio of 0.95 and a beta of 0.35. The company has a debt-to-equity ratio of 1.00, a current ratio of 1.09 and a quick ratio of 0.97. The company has a 50 day simple moving average of $478.66 and a two-hundred day simple moving average of $497.63. Northrop Grumman has a one year low of $418.60 and a one year high of $555.57.

Northrop Grumman Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, December 18th. Stockholders of record on Monday, December 2nd were paid a dividend of $2.06 per share. This represents a $8.24 dividend on an annualized basis and a dividend yield of 1.74%. The ex-dividend date of this dividend was Monday, December 2nd. Northrop Grumman’s payout ratio is 51.05%.

Northrop Grumman announced that its Board of Directors has initiated a share repurchase program on Wednesday, December 11th that permits the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization permits the aerospace company to purchase up to 4.3% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s management believes its stock is undervalued.

Insider Activity

In related news, VP Benjamin R. Davies sold 1,156 shares of the business’s stock in a transaction dated Monday, November 11th. The shares were sold at an average price of $532.93, for a total transaction of $616,067.08. Following the sale, the vice president now owns 537 shares of the company’s stock, valued at $286,183.41. The trade was a 68.28 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. In the last quarter, insiders have sold 1,255 shares of company stock worth $663,859. 0.22% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

Several analysts recently commented on NOC shares. StockNews.com raised shares of Northrop Grumman from a “buy” rating to a “strong-buy” rating in a research note on Sunday, January 19th. Wells Fargo & Company raised shares of Northrop Grumman from an “equal weight” rating to an “overweight” rating and set a $595.00 price target on the stock in a research note on Wednesday, January 8th. Truist Financial began coverage on Northrop Grumman in a report on Tuesday, January 14th. They set a “buy” rating and a $544.00 target price on the stock. UBS Group increased their price objective on Northrop Grumman from $614.00 to $643.00 and gave the company a “buy” rating in a research report on Friday, October 25th. Finally, Royal Bank of Canada raised their price objective on Northrop Grumman from $500.00 to $540.00 and gave the stock a “sector perform” rating in a research report on Friday, October 25th. Eight investment analysts have rated the stock with a hold rating, eight have issued a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $550.94.

Northrop Grumman Company Profile

Northrop Grumman Corporation operates as an aerospace and defense technology company in the United States, Asia/Pacific, Europe, and internationally. The company’s Aeronautics Systems segment designs, develops, manufactures, integrates, and sustains aircraft systems. This segment also offers unmanned autonomous aircraft systems, including high-altitude long-endurance strategic ISR systems and vertical take-off and landing tactical ISR systems; and strategic long-range strike aircraft, tactical fighter and air dominance aircraft, and airborne battle management and command and control systems.