Northrop Grumman Corp (LTS:0K92)

$ 538.77 9.2356 (1.74%) Market Cap: 77.76 Bil Enterprise Value: 90.94 Bil PE Ratio: 32.99 PB Ratio: 5.28 GF Score: 83/100

Q2 2024 Northrop Grumman Corp Earnings Call Transcript

Jul 25, 2024 / 01:00PM GMT

Release Date Price: $470.62 (+6.41%)

Transcript 10-Q8-K

Key Points

Positve

Northrop Grumman Corp (NOC) reported a 7% increase in sales for the quarter and 8% year-to-date.
Operating income grew by 13% in the second quarter, driven by solid program performance and cost management.
Earnings per share (EPS) increased by 19%, reflecting strong top and bottom-line results.
Free cash flow was robust, up over $500 million compared to the first half of last year.
The company increased its 2024 revenue and EPS guidance based on strong first-half results and continued demand.

Negative

The Sentinel program has experienced significant cost growth, primarily in the production phase, which could impact future budgets.
Mission Systems' operating margin rate was lower than the previous year due to lower net EAC adjustments and changes in contract mix.
Space segment sales are expected to be relatively flat this year and down somewhat in 2025 due to the removal of certain programs.
There are concerns about the cost and schedule estimates for the Sentinel program, which may require restructuring.
The B-21 program, while progressing well, still faces uncertainties regarding final pricing and terms for future lots.

Operator

Good day, ladies and gentlemen, and welcome to Northrop Grumman's second-quarter 2024 conference call. Today's call is being recorded. My name is Josh, and I will be your operator today. (Operator Instructions)

I would now like to turn the call over to your host, Mr. Todd Ernst, Vice President, Investor Relations. Mr. Ernst, please proceed.

Todd Ernst

Northrop Grumman Corporation - VP of Investor Relations

Thanks, Josh, and good morning, everyone. And welcome to Northrop Grumman's second-quarter 2024 conference call.

Before we start, matters discussed on today's call, including guidance and outlooks for 2024 and beyond, reflect the company's judgment based on information available at the time of this call. They constitute forward-looking statements pursuant to safe harbor provisions of federal securities laws.

Forward-looking statements involve risks and uncertainties, including those noted in today's press release and our SEC filings. These risks and uncertainties may cause actual company results to differ materially.

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