Northrop Grumman (NYSE:NOC) Posts Earnings Results, Beats Expectations By $0.12 EPS

Northrop Grumman (NYSE:NOC) issued its earnings results on Thursday. The aerospace company reported $6.39 earnings per share (EPS) for the quarter, topping 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 Up 0.7 %

Shares of NOC stock opened at $486.97 on Friday. Northrop Grumman has a fifty-two week low of $418.60 and a fifty-two week high of $555.57. The company has a 50 day moving average price of $478.20 and a 200 day moving average price of $497.91. The stock has a market capitalization of $70.95 billion, a P/E ratio of 30.17, a price-to-earnings-growth ratio of 0.91 and a beta of 0.35. The company has a debt-to-equity ratio of 1.00, a quick ratio of 0.97 and a current ratio of 1.09.

Northrop Grumman Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, December 18th. Shareholders of record on Monday, December 2nd were paid a dividend of $2.06 per share. The ex-dividend date was Monday, December 2nd. This represents a $8.24 dividend on an annualized basis and a yield of 1.69%. Northrop Grumman’s dividend payout ratio (DPR) is presently 29.08%.

Insiders Place Their Bets

In other news, VP Benjamin R. Davies sold 1,156 shares of the firm’s stock in a transaction that occurred on Monday, November 11th. The shares were sold at an average price of $532.93, for a total transaction of $616,067.08. Following 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 sale was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders have sold a total of 1,255 shares of company stock worth $663,859 in the last ninety days. 0.22% of the stock is owned by corporate insiders.

Northrop Grumman declared that its board has approved a stock buyback plan on Wednesday, December 11th that allows the company to repurchase $3.00 billion in shares. This repurchase authorization allows the aerospace company to buy up to 4.3% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s board believes its stock is undervalued.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on NOC shares. Royal Bank of Canada lifted their price target on Northrop Grumman from $500.00 to $540.00 and gave the company a “sector perform” rating in a research report on Friday, October 25th. Truist Financial initiated coverage on shares of Northrop Grumman in a research report on Tuesday, January 14th. They set a “buy” rating and a $544.00 price target on the stock. TD Cowen upgraded shares of Northrop Grumman to a “hold” rating in a research report on Tuesday, October 8th. Susquehanna dropped their target price on Northrop Grumman from $625.00 to $557.00 and set a “positive” rating on the stock in a research report on Wednesday, January 8th. Finally, Barclays reduced their price target on Northrop Grumman from $550.00 to $500.00 and set an “equal weight” rating for the company in a report on Monday, January 6th. Eight equities research 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 stock. Based on data from MarketBeat, Northrop Grumman has an average rating of “Moderate Buy” and an average target price of $544.31.

About Northrop Grumman

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.