 "Northrop Grumman Stock Falls After 2025 Outlook, Q4 Sales Fails To Impress Wall Street, Retail’s Bearish")
synopsis
Its fourth-quarter revenue stood at $10.69 billion year-over-year (YOY), falling short of the average analysts’ estimate of $10.97 billion.
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.’
Earlier this week, peers Lockheed Martin and General Dynamics had also projected 2025 sales below estimates.
Over the past year, Northrop Grumman stock has gained 6.7%.
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