Summary
Northrop Grumman Corporation reported total sales of $5.98 billion for the third quarter of 2014, a slight decrease of 2% compared to the same period in the prior year. This decline was primarily driven by lower sales in the Information Systems and Technical Services segments. Net earnings for the quarter were $473 million, resulting in diluted earnings per share of $2.26, an increase from $2.14 in Q3 2013, aided by a reduction in outstanding shares due to ongoing share repurchase programs. For the nine-month period, total sales were $17.87 billion, down 3% year-over-year. Net earnings for the nine months increased to $1.56 billion from $1.47 billion in the prior year, with diluted EPS rising to $7.28 from $6.22. The company's operating income showed resilience, with a slight decrease in the quarter but an overall increase for the year-to-date period, supported by favorable contract estimate adjustments and lower pension expenses due to recent legislation. The company continues to manage its business through its four key segments and maintains a strong backlog of $38.5 billion.
Financial Highlights
47 data points| Revenue | $5.98B |
| Cost of Revenue | $2.61B |
| Gross Profit | $3.37B |
| Operating Income | $769.00M |
| Net Income | $473.00M |
| EPS (Basic) | $2.29 |
| EPS (Diluted) | $2.26 |
| Shares Outstanding (Basic) | 206.20M |
| Shares Outstanding (Diluted) | 209.20M |
Key Highlights
- 1Total sales for the third quarter of 2014 were $5.98 billion, down 2% year-over-year, with the Information Systems and Technical Services segments showing declines.
- 2Net earnings for the quarter were $473 million, with diluted EPS of $2.26, an increase from $2.14 in Q3 2013, partly due to fewer outstanding shares from buybacks.
- 3For the nine months ended September 30, 2014, net earnings increased to $1.56 billion from $1.47 billion, and diluted EPS rose to $7.28 from $6.22.
- 4Operating income for the nine-month period increased to $2.43 billion from $2.36 billion, reflecting favorable contract estimate adjustments and reduced pension costs.
- 5The company's total backlog stood at $38.5 billion as of September 30, 2014, an increase of 4% from the end of 2013, driven by awards in the Aerospace Systems segment.
- 6Cash and cash equivalents decreased to $3.4 billion from $5.15 billion at the beginning of the year, reflecting significant share repurchases and debt-related activities.
- 7The company received a $75 million settlement from the U.S. Government related to intellectual property use and a terminated program, recognized in product sales for the Aerospace Systems segment.