Northrop Grumman Stock Falls After 2025 Outlook, Q4 Sales Fails To Impress Wall Street, Retail’s Bearish

Its fourth-quarter revenue stood at $10.69 billion year-over-year (YOY), falling short of the average analysts’ estimate of $10.97 billion.

Stocktwits Inc

Published: Jan 30, 2025, 10:48 PM IST

Northrop Grumman Corp. (NOC) shares fell 2.1% on Thursday as the company forecasted 2025 revenue below Wall Street estimates after missing fourth-quarter sales estimates.

The defense firm projected 2025 revenue between $42 billion and $42.5 billion, compared with the average analysts’ estimate of $42.80 billion, according to FinChat data.

While analysts expect defense spending to remain strong during Donald Trump’s presidency, investors have expressed concerns regarding possible spending cuts proposed by the Elon Musk-headed Department of Government Efficiency.

Its fourth-quarter revenue stood at $10.69 billion year-over-year (YOY), falling short of the average analysts’ estimate of $10.97 billion.

The company’s space systems sales declined 13% to $2.71 billion due to wind-down
of work on the restricted space and Next Generation Interceptor (NGI) programs.

On an adjusted basis, the company reported net earnings of $6.39 per share, topping the Street estimate of $6.35 per share.

The company’s quarterly sales in its aeronautics systems unit increased 11% to $3.22 billion, primarily due to the continuing transition to production on the B-21 strategic bombers.

Its defense systems sales rose 5% to $2.33 billion, aided by higher volume on certain military ammunition programs.

“Our guidance anticipates continued top-line growth, margin expansion, and double-digit cash flow growth,” CEO Kathy Warden said in a statement.

Retail sentiment on Stocktwits remained in ‘bearish’ (39/100) territory but with a higher score than a day ago, while retail chatter jumped to ‘extremely high.’