Summary
Northrop Grumman Corporation reported solid financial results for the first quarter of 2018, with total sales increasing by 5% year-over-year to $6.735 billion. This growth was primarily driven by the Aerospace Systems segment, which saw a 10% increase in sales. Net earnings rose by a significant 14% to $739 million, leading to a corresponding increase in diluted earnings per share to $4.21. The company also announced the expected closing of the Orbital ATK acquisition in the first half of 2018, a strategic move expected to enhance its capabilities and market position. Despite a slight decrease in operating income margin to 12.7%, the company demonstrated strong revenue growth and profitability, positioning it well for future expansion and program execution.
Financial Highlights
49 data points| Revenue | $6.74B |
| Cost of Revenue | $3.27B |
| Gross Profit | $3.47B |
| Operating Income | $848.00M |
| Net Income | $840.00M |
| EPS (Basic) | $4.82 |
| EPS (Diluted) | $4.79 |
| Shares Outstanding (Basic) | 174.30M |
| Shares Outstanding (Diluted) | 175.40M |
Key Highlights
- 1Total sales increased by 5% to $6.735 billion, driven by strong performance in the Aerospace Systems segment.
- 2Net earnings grew by 14% to $739 million, with diluted earnings per share increasing to $4.21.
- 3The company is on track to close the acquisition of Orbital ATK in the first half of 2018, which is expected to create a fourth business sector.
- 4Operating income saw a slight decrease of 1%, primarily due to pension adjustments, but segment operating income increased by 3%.
- 5The effective tax rate decreased to 15.2% from 17.5% due to the U.S. corporate tax rate reduction.
- 6Backlog remained strong at $42.3 billion as of March 31, 2018.
- 7The company repurchased $229 million less in stock compared to the prior year's first quarter, indicating a focus on other capital deployment strategies or market conditions.