Zacks Research Forecasts Lower Earnings for Northrop Grumman

Northrop Grumman Co. (NYSE:NOC) – Analysts at Zacks Research reduced their Q1 2025 earnings estimates for Northrop Grumman in a research note issued to investors on Thursday, February 20th. Zacks Research analyst A. Dutta now forecasts that the aerospace company will post earnings of $6.33 per share for the quarter, down from their previous estimate of $6.43. The consensus estimate for Northrop Grumman’s current full-year earnings is $28.05 per share. Zacks Research also issued estimates for Northrop Grumman’s Q2 2025 earnings at $7.07 EPS, Q3 2025 earnings at $7.15 EPS, Q4 2025 earnings at $7.34 EPS, FY2025 earnings at $27.89 EPS, Q2 2026 earnings at $6.28 EPS and FY2027 earnings at $30.97 EPS.

Other equities analysts also recently issued research reports about the stock. Susquehanna reduced their price objective on shares of Northrop Grumman from $625.00 to $557.00 and set a “positive” rating for the company in a research note on Wednesday, January 8th. Citigroup boosted their price objective on shares of Northrop Grumman from $587.00 to $591.00 and gave the stock a “buy” rating in a research note on Monday, February 10th. Wells Fargo & Company reduced their price objective on shares of Northrop Grumman from $595.00 to $574.00 and set an “overweight” rating for the company in a research note on Friday, January 31st. Wolfe Research raised shares of Northrop Grumman from an “underperform” rating to a “peer perform” rating in a report on Monday, February 3rd. Finally, Barclays cut their price target on shares of Northrop Grumman from $550.00 to $500.00 and set an “equal weight” rating on the stock in a report on Monday, January 6th. Nine analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company’s stock. According to MarketBeat, Northrop Grumman has an average rating of “Moderate Buy” and a consensus target price of $544.56.

Northrop Grumman Stock Performance

Shares of NYSE:NOC opened at $448.59 on Monday. The company has a market capitalization of $64.94 billion, a price-to-earnings ratio of 15.83, a price-to-earnings-growth ratio of 3.73 and a beta of 0.35. Northrop Grumman has a 52 week low of $418.60 and a 52 week high of $555.57. The company has a quick ratio of 0.91, a current ratio of 1.01 and a debt-to-equity ratio of 0.96. The firm has a 50 day moving average of $471.03 and a 200 day moving average of $497.58.

Northrop Grumman (NYSE:NOC) last issued its quarterly earnings data on Thursday, January 30th. The aerospace company reported $6.39 EPS for the quarter, topping analysts’ consensus estimates of $6.27 by $0.12. Northrop Grumman had a net margin of 10.17% and a return on equity of 26.24%.

Institutional Investors Weigh In On Northrop Grumman

A number of large investors have recently made changes to their positions in NOC. Capital International Investors grew its holdings in shares of Northrop Grumman by 5.9% during the fourth quarter. Capital International Investors now owns 8,239,434 shares of the aerospace company’s stock valued at $3,866,133,000 after buying an additional 461,307 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its position in Northrop Grumman by 28.5% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,030,644 shares of the aerospace company’s stock valued at $952,962,000 after purchasing an additional 450,858 shares during the period. Two Sigma Advisers LP lifted its position in Northrop Grumman by 102.6% during the third quarter. Two Sigma Advisers LP now owns 735,600 shares of the aerospace company’s stock valued at $388,448,000 after purchasing an additional 372,500 shares during the period. First Trust Advisors LP lifted its position in Northrop Grumman by 337.1% during the fourth quarter. First Trust Advisors LP now owns 482,112 shares of the aerospace company’s stock valued at $226,250,000 after purchasing an additional 371,814 shares during the period. Finally, Raymond James Financial Inc. acquired a new position in Northrop Grumman during the fourth quarter valued at $171,580,000. 83.40% of the stock is owned by hedge funds and other institutional investors.

Northrop Grumman Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 19th. Stockholders of record on Monday, March 3rd will be issued a dividend of $2.06 per share. This represents a $8.24 dividend on an annualized basis and a dividend yield of 1.84%. The ex-dividend date is Monday, March 3rd. Northrop Grumman’s dividend payout ratio (DPR) is presently 29.08%.

Northrop Grumman declared that its board has initiated a share repurchase plan on Wednesday, December 11th that allows the company to buyback $3.00 billion in shares. This buyback authorization allows the aerospace company to repurchase up to 4.3% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s board of directors believes its stock is undervalued.

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.