$NOC (-0.09%) | Northrop Grumman Q3'24 Earnings Highlights:

🔹 Adj EPS: $7.00 (Est. $6.08) 🟢; UP +13% YoY

🔹 Revenue: $10.0B (Est. $10.18B) 🔴; UP +2% YoY

🔹 Backlog: $84.8B; a new record

🔹 Operating Margin: 11.2% (vs. 10.4% YoY)

FY24 Guidance:

🔸 Adjusted EPS: Raised to $25.65-$26.05 (Prior: $24.90-$25.30) 🟢

🔸 Sales: Affirmed $41.0B-$41.4B

Segment Highlights:

Aeronautics Systems:

🔹 Sales: $2.88B; UP +4% YoY

🔹 Operating Income: $298M; UP +5% YoY

🔸 Growth driven by higher F-35 production, E-2 fleet sustainment, and Triton production.

Defense Systems:

🔹 Sales: $2.08B; UP +2% YoY

🔹 Operating Income: $196M; DOWN -2% YoY

🔸 Sales increase driven by Sentinel program ramp-up and military ammunition programs.

Mission Systems:

🔹 Sales: $2.82B; UP +7% YoY

🔹 Operating Income: $390M; UP +1% YoY

🔸 Higher sales from microelectronics programs and marine systems.

Space Systems:

🔹 Sales: $2.87B; DOWN -3% YoY

🔹 Operating Income: $345M; UP +14% YoY

🔸 Sales impacted by the wind-down of NGI programs; growth supported by Space Development Agency satellites.

Key Metrics:

🔸 Net Income: $1.0B; UP +9% YoY

🔹 Net Awards: $11.7B

Business and Strategic Updates:

🔸 Expects free cash flow growth of more than 20% in 2025.

🔸 Plans reduced capital spending to ~$1.5B in 2025.

🔸 Continuing discussions with government customers on key defense programs to support future growth.