A Glimpse of Northrop Grumman's Earnings Potential

Northrop Grumman (NYSE:NOC) is gearing up to announce its quarterly earnings on Tuesday, 2025-07-22. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Northrop Grumman will report an earnings per share (EPS) of $6.69.

The announcement from Northrop Grumman is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Earnings Track Record

During the last quarter, the company reported an EPS missed by $0.20, leading to a 1.85% increase in the share price on the subsequent day.

Here's a look at Northrop Grumman's past performance and the resulting price change:

Tracking Northrop Grumman's Stock Performance

Shares of Northrop Grumman were trading at $519.04 as of July 18. Over the last 52-week period, shares are up 17.73%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Observations about Northrop Grumman

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Northrop Grumman.

Analysts have given Northrop Grumman a total of 6 ratings, with the consensus rating being Outperform. The average one-year price target is $546.33, indicating a potential 5.26% upside.

Peer Ratings Overview

In this comparison, we explore the analyst ratings and average 1-year price targets of Howmet Aerospace, General Dynamics and Axon Enterprise, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Howmet Aerospace, with an average 1-year price target of $179.75, suggesting a potential 65.37% downside.
• Analysts currently favor an Buy trajectory for General Dynamics, with an average 1-year price target of $309.83, suggesting a potential 40.31% downside.
• Analysts currently favor an Buy trajectory for Axon Enterprise, with an average 1-year price target of $782.86, suggesting a potential 50.83% upside.

Insights: Peer Analysis

The peer analysis summary outlines pivotal metrics for Howmet Aerospace, General Dynamics and Axon Enterprise, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Northrop Grumman ranks at the bottom for Revenue Growth among its peers. It is also at the bottom for Gross Profit. However, it is in the middle for Return on Equity.

All You Need to Know About Northrop Grumman

Northrop Grumman is a diversified defense contractor providing aeronautics, defense, and space systems. The company's aerospace segment creates the fuselage for the massive F-35 program, produces autonomous and piloted aircraft such as Global Hawk drones and the new B-21 bomber, and maintains and upgrades numerous military aircraft. Defense systems makes artillery and missile ammunition and guidance systems, long-range missiles, and missile defense systems. Mission systems creates and integrates a variety of radar, navigation, and communication systems for avionics, weapons control, and countermeasures on a range of platforms from helicopters to destroyers. Space systems produces satellites, sensors, space structures, and rocket motors.

Northrop Grumman's Financial Performance

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Decline in Revenue: Over the 3 months period, Northrop Grumman faced challenges, resulting in a decline of approximately -6.56% in revenue growth as of 31 March, 2025. This signifies a reduction in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 5.08%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 3.18%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Northrop Grumman's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.98%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Northrop Grumman's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.07, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

To track all earnings releases for Northrop Grumman visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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