Northrop Grumman Corporation


SKU: NOC-1 Category:


Northrop Grumman managed to exceed analyst expectations in terms of revenue as well as earnings. The company’s revenues increased in the second quarter, with each of its 4 business sectors making significant contributions. Their capacity for talent acquisition and retention, as well as improved supplier deliveries, are bolstering their top line. Global demand for their products is also increasing as their allies increase defense spending to combat emerging threats. Northrop is well positioned to address this demand in numerous areas, with programs such as AARGM, IBCS, and E-2D, as well as munitions. Furthermore, as GBSD, NGI, and restricted space programs continue to ramp up, Space is in the lead with a second straight quarter of revenue increase. The Space business continues to outperform in sales growth and bookings, proving the value of its wide array of capabilities. Defense Systems and Mission Systems sales also climbed in the quarter. Aeronautics Systems returned to growth as higher volume on restricted programs beats the expected headwinds on legacy programs. They presented their IBCS system to eight potential foreign clients during the second quarter, demonstrating the rising demand for this sophisticated air and missile defense capabilities. Additionally, the company signed a memorandum of understanding with Rheinmetall to increase production of the F-35 center fuselage in Europe. We give Northrop Grumman Corporation a ‘Hold’ rating with a revised target price.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

Want unlimited access to our reports? Purchase our $99 annual subscription!