Northrop Grumman Reports Q1 2024 Results

TL;DR

<b>Northrop Grumman's Q1 2024 revenue and net income declined year-over-year, impacting EPS.</b>

AI Summary

NORTHROP GRUMMAN CORP /DE/ (NOC) filed a Quarterly Report (10-Q) with the SEC on April 25, 2024. Revenue for Q1 2024 was $10.01 billion, a decrease from $10.15 billion in Q1 2023. Net income for Q1 2024 was $703 million, down from $761 million in Q1 2023. Earnings per share (EPS) for Q1 2024 were $4.15, compared to $4.45 in Q1 2023. Total assets as of March 31, 2024, were $42.19 billion. Total debt as of March 31, 2024, was $11.18 billion.

Why It Matters

For investors and stakeholders tracking NORTHROP GRUMMAN CORP /DE/, this filing contains several important signals. The decrease in revenue and net income suggests potential headwinds in contract fulfillment or new business acquisition during the first quarter. The company's substantial asset and debt figures indicate a large, capital-intensive operation that requires careful financial management.

Risk Assessment

Risk Level: medium — NORTHROP GRUMMAN CORP /DE/ shows moderate risk based on this filing. The decline in revenue and net income in Q1 2024 compared to Q1 2023 indicates a potential slowdown in business performance, which could impact future profitability.

Analyst Insight

Investors should monitor Northrop Grumman's ability to reverse the revenue and net income decline in subsequent quarters and assess the reasons behind the year-over-year decrease.

Financial Highlights

debt To Equity

N/A

revenue

10.01 billion

operating Margin

N/A

total Assets

42.19 billion

total Debt

11.18 billion

net Income

703 million

eps

4.15

gross Margin

N/A

cash Position

N/A

revenue Growth

-1.38%

Revenue Breakdown

Key Numbers

• 10.01 billion — Q1 2024 Revenue (USD)
• 10.15 billion — Q1 2023 Revenue (USD)
• 703 million — Q1 2024 Net Income (USD)
• 761 million — Q1 2023 Net Income (USD)
• 4.15 — Q1 2024 EPS (USD)
• 4.45 — Q1 2023 EPS (USD)
• 42.19 billion — Total Assets (As of March 31, 2024)
• 11.18 billion — Total Debt (As of March 31, 2024)

Key Players & Entities

• NORTHROP GRUMMAN CORP /DE/ (company) — Filer
• 2024-03-31 (date) — End of reporting period
• $10.01 billion (dollar_amount) — Q1 2024 revenue
• $10.15 billion (dollar_amount) — Q1 2023 revenue
• $703 million (dollar_amount) — Q1 2024 net income
• $761 million (dollar_amount) — Q1 2023 net income
• $4.15 (dollar_amount) — Q1 2024 EPS
• $4.45 (dollar_amount) — Q1 2023 EPS

FAQ

Industry Context

Northrop Grumman operates in the aerospace and defense industry, a sector characterized by long-term government contracts and significant technological development.

Regulatory Implications

The company is subject to various U.S. government regulations related to defense contracting, procurement, and export controls.

What Investors Should Do

1. Analyze the specific reasons for the year-over-year revenue and net income decline.
2. Evaluate the company's debt-to-equity ratio and cash flow to assess financial health.
3. Monitor future filings for signs of revenue recovery and operational improvements.

Year-Over-Year Comparison

Q1 2024 revenue of $10.01 billion decreased from $10.15 billion in Q1 2023, and net income fell to $703 million from $761 million.

Filing Documents

• noc-20240331.htm (10-Q) — 1175KB
• noc-03312024xex101.htm (EX-10.1) — 88KB
• noc-03312024xex102.htm (EX-10.2) — 97KB
• noc-03312024xex103.htm (EX-10.3) — 50KB
• noc-03312024xex15.htm (EX-15) — 4KB
• noc-03312024xex311.htm (EX-31.1) — 10KB
• noc-03312024xex312.htm (EX-31.2) — 10KB
• noc-03312024xex321.htm (EX-32.1) — 5KB
• noc-03312024xex322.htm (EX-32.2) — 5KB
• 0001133421-24-000026.txt (&nbsp;) — 6896KB
• noc-20240331.xsd (EX-101.SCH) — 41KB
• noc-20240331_cal.xml (EX-101.CAL) — 45KB
• noc-20240331_def.xml (EX-101.DEF) — 199KB
• noc-20240331_lab.xml (EX-101.LAB) — 564KB
• noc-20240331_pre.xml (EX-101.PRE) — 388KB
• noc-20240331_htm.xml (XML) — 1093KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) Condensed Consolidated Statements of Earnings and Comprehensive Income 1 Condensed Consolidated Statements of Financial Position 2 Condensed Consolidated Statements of Cash Flows 3 Condensed Consolidated Statements of Changes in Shareholders' Equity 4 Notes to Condensed Consolidated Financial Statements 1. Basis of Presentation 5 2. Earnings Per Share, Share Repurchases and Dividends on Common Stock 7 3. Inventoried Costs, Net 9 4. Income Taxes 9 5. Fair Value of Financial Instruments 10 6. Investigations, Claims and Litigation 11 7. Commitments and Contingencies 11 8. Retirement Benefits 13 9. Stock Compensation Plans and Other Compensation Arrangements 13 10. Segment Information 14 Report of Independent Registered Public Accounting Firm 18

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Overview 19 Consolidated Operating Results 21 Segment Operating Results 21 Product and Service Analysis 25 Backlog 26 Liquidity and Capital Resources 26 Critical Accounting Policies, Estimates and Judgments 28 Accounting Standards Updates 28

Forward-Looking Statements and Projections

Forward-Looking Statements and Projections 28

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 29

Controls and Procedures

Item 4. Controls and Procedures 29

– OTHER INFORMATION

PART II – OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 30

Risk Factors

Item 1A. Risk Factors 30

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 30

Other Information

Item 5. Other Information 30

Exhibits

Item 6. Exhibits 32

Signatures

Signatures 33 i Table of Contents NORTHROP GRUMMAN CORPORATION

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (Unaudited) Three Months Ended March 31 $ in millions, except per share amounts 2024 2023 Sales Product $ 8,102 $ 7,271 Service 2,031 2,030 Total sales 10,133 9,301 Operating costs and expenses Product 6,411 5,727 Service 1,589 1,589 General and administrative expenses 1,062 1,038 Total operating costs and expenses 9,062 8,354 Operating income 1,071 947 Other (expense) income Interest expense ( 146 ) ( 129 ) Non-operating FAS pension benefit 168 132 Other, net 38 48 Earnings before income taxes 1,131 998 Federal and foreign income tax expense 187 156 Net earnings $ 944 $ 842 Basic earnings per share $ 6.34 $ 5.52 Weighted-average common shares outstanding, in millions 148.9 152.6 Diluted earnings per share $ 6.32 $ 5.50 Weighted-average diluted shares outstanding, in millions 149.3 153.2 Net earnings (from above) $ 944 $ 842 Other comprehensive (loss) income, net of tax Change in cumulative translation adjustment 1 2 Change in other, net ( 16 ) — Other comprehensive (loss) income, net of tax ( 15 ) 2 Comprehensive income $ 929 $ 844 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. -1- Table of Contents NORTHROP GRUMMAN CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited) $ in millions, except par value March 31, 2024 December 31, 2023 Assets Cash and cash equivalents $ 3,061 $ 3,109 Accounts receivable, net 1,832 1,454 Unbilled receivables, net 6,450 5,693 Inventoried costs, net 1,370 1,109 Prepaid expenses and other current assets 2,083 2,341 Total current assets 14,796 13,706 Property, plant and equipment, net of accumulated depreciation of $ 8,149 for 2024 and $ 7,964 for 2023 9,690 9,653 Operating lease right-of-use assets 1,763 1,818 Goodwill 17,515 17,517 Intangible assets, net 290 305 Deferred tax assets 1,123 1,020

View Full Filing

View this 10-Q filing on SEC EDGAR