Northrop Grumman (NYSE:NOC) Posts 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 for the quarter, beating analysts’ consensus estimates 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 Trading Down 1.0 %

Shares of Northrop Grumman stock traded down $5.02 during trading hours on Thursday, hitting $476.52. The company’s stock had a trading volume of 639,641 shares, compared to its average volume of 829,497. 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 market capitalization of $69.43 billion, a PE ratio of 29.38, a price-to-earnings-growth ratio of 0.95 and a beta of 0.35. Northrop Grumman has a 12 month low of $418.60 and a 12 month high of $555.57. The stock has a 50 day moving average of $478.66 and a 200 day moving average of $497.63.

Northrop Grumman Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, December 18th. Shareholders of record on Monday, December 2nd were issued a $2.06 dividend. The ex-dividend date was Monday, December 2nd. This represents a $8.24 annualized dividend and a dividend yield of 1.73%. Northrop Grumman’s dividend payout ratio (DPR) is currently 51.05%.

Wall Street Analyst Weigh In

A number of research firms have issued reports on NOC. UBS Group raised their target price on Northrop Grumman from $614.00 to $643.00 and gave the company a “buy” rating in a report on Friday, October 25th. Truist Financial began coverage on Northrop Grumman in a research report on Tuesday, January 14th. They set a “buy” rating and a $544.00 target price for the company. TD Cowen upgraded Northrop Grumman to a “hold” rating in a research report on Tuesday, October 8th. Citigroup raised Northrop Grumman from a “neutral” rating to a “buy” rating and set a $587.00 price objective on the stock in a research note on Tuesday, January 21st. Finally, Wells Fargo & Company raised 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. Eight investment analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $550.94.

Insider Buying and Selling

In related news, VP Benjamin R. Davies sold 1,156 shares of the stock in a transaction dated Monday, November 11th. The stock was sold at an average price of $532.93, for a total transaction of $616,067.08. Following the completion of the transaction, the vice president now directly owns 537 shares in the company, valued at approximately $286,183.41. This trade represents a 68.28 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Over the last three months, insiders sold 1,255 shares of company stock worth $663,859. 0.22% of the stock is owned by corporate insiders.

Northrop Grumman announced that its Board of Directors has initiated a stock repurchase program on Wednesday, December 11th that allows the company to repurchase $3.00 billion in shares. This repurchase authorization allows the aerospace company to purchase up to 4.3% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board of directors believes its shares are undervalued.

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.