Northrop Grumman Reports Record Earnings for Q2 of 2023
August 28, 2023
🌥️Earnings Overview
On July 27, 2023, Northrop Grumman ($NYSE:NOC) announced their financial earnings for the second quarter of fiscal year 2023, ending June 30, 2023. Total revenue surged to USD 9576.0 million, an 8.8% rise from the previous year; however, there was a 14.2% yearly decrease in net income to USD 812.0 million.
Price History
On Thursday, Northrop Grumman reported record earnings for the second quarter of 2023. The aerospace and defense company’s stock opened at $442.7 and closed at $445.3, representing a 2.6% drop from the previous closing price of $457.2. This dip in share prices could be attributed to the increasing global demand for defense products and services, as well as the company’s ongoing efforts to secure government contracts.
These record earnings signal Northrop Grumman’s continuing trend of success and demonstrate the company’s ability to maintain its position as a leader in the defense industry. With the potential for further growth on the horizon, Northrop Grumman is well-positioned to remain a key player in the aerospace and defense sector. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Northrop Grumman. More…
| Total Revenues | Net Income | Net Margin |
| 37.88k | 4.65k | 12.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Northrop Grumman. More…
| Operations | Investing | Financing |
| 3.8k | -1.39k | -203 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Northrop Grumman. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 45.61k | 30.12k | 101.98 |
Key Ratios Snapshot
Some of the financial key ratios for Northrop Grumman are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.0% | -3.0% | 16.0% |
| FCF Margin | ROE | ROA |
| 6.0% | 24.7% | 8.3% |
Analysis
GoodWhale recently conducted a detailed analysis of NORTHROP GRUMMAN‘s wellbeing. We have created an assessment of NORTHROP GRUMMAN’s financial fundamentals, using our proprietary Star Chart method. The Star Chart shows that NORTHROP GRUMMAN is strong in dividend, profitability, and medium in growth. NORTHROP GRUMMAN’s weakest area is asset growth. The overall health score of NORTHROP GRUMMAN is 8/10, which is very high. This score was achieved due to NORTHROP GRUMMAN’s strong cashflows and debt, meaning that they are capable of safely riding out any crisis without the risk of bankruptcy. Based on these results, we classify NORTHROP GRUMMAN as a ‘rhino’. This type of company has achieved moderate revenue or earnings growth but has a strong balance sheet, making it a safe choice for investors. Investors who are looking for a reliable long-term investment may be interested in NORTHROP GRUMMAN. More…
Peers
The competition between Northrop Grumman Corp and its competitors is fierce. Lockheed Martin Corp, Raytheon Technologies Corp, and General Dynamics Corp are all vying for market share in the defense industry. Its competitors are also strong in these areas, but Northrop Grumman Corp has a distinct advantage in terms of experience and size.
– Lockheed Martin Corp ($NYSE:LMT)
Lockheed Martin is an American aerospace, defense, security, and advanced technologies company with worldwide interests, headquartered in Bethesda, Maryland. The company’s history can be traced back to the merger of two companies in 1995: Lockheed Corporation and Martin Marietta. Lockheed Martin has since diversified its business portfolio and now focuses on five main areas: aeronautics, missiles and fire control, rotary and mission systems, space, and strategic and missile defense.
The company’s market cap as of 2022 is 115.3B, and its ROE is 40.32%. Lockheed Martin is a large and diversified company with a long history and a strong focus on innovation. The company’s size and scale give it a significant competitive advantage in the marketplace.
– Raytheon Technologies Corp ($NYSE:RTX)
Raytheon Technologies Corporation is an aerospace and defense company that provides advanced systems and services for commercial, military, and government customers worldwide. The company was formed in 2020 through the merger of Raytheon Company and United Technologies Corporation.
Raytheon Technologies has a market capitalization of $128.97 billion as of 2022. The company’s return on equity is 5.62%. Raytheon Technologies is a leading provider of aerospace and defense systems and services. The company’s products and services include missiles, precision weapons, radar and sensor systems, aircraft engines, and more.
– General Dynamics Corp ($NYSE:GD)
General Dynamics Corporation is an American aerospace and defense conglomerate formed by mergers and divestitures, and as of 2012, is the fifth-largest defense contractor in the world. It is headquartered in Reston, Virginia. The company has changed markedly in the post–Cold War era of defense consolidation. It has four main business segments: Marine Systems, Combat Systems, Information Systems and Technology, and Aerospace.
General Dynamics’ market cap is 65.65B as of 2022. It’s ROE is 15.16%. The company is an American aerospace and defense conglomerate formed by mergers and divestitures, and as of 2012, is the fifth-largest defense contractor in the world.
Summary
NORTHROP GRUMMAN reported their Q2 FY2023 earnings on July 27, 2023. Total revenue for the quarter was up 8.8% from the previous year, while net income decreased 14.2%. For investors, these results show that NORTHROP GRUMMAN is still performing well despite the dip in net income.
The company’s cost-cutting measures and strong leadership have enabled it to remain competitive and profitable in this challenging economic environment. Investors should keep an eye on NORTHROP GRUMMAN’s performance in the coming quarters to assess if the market is still favorable for the company.
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