Yahoo Finance Earnings Beat: Northrop Grumman Corporation Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
Northrop Grumman Corporation (NYSE:NOC) just released its first-quarter report and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 3.8% to hit US$10b. Statutory earnings per share (EPS) came in at US$6.32, some 9.6% above whatthe analysts had expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Northrop Grumman after the latest results.
See our latest analysis for Northrop Grumman
Taking into account the latest results, the most recent consensus for Northrop Grumman from 21 analysts is for revenues of US$41.1b in 2024. If met, it would imply an okay 2.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 69% to US$24.58. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$41.1b and earnings per share (EPS) of US$24.65 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$495. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Northrop Grumman analyst has a price target of US$585 per share, while the most pessimistic values it at US$396. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 3.2% growth on an annualised basis. That is in line with its 3.3% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 2.4% per year. So although Northrop Grumman is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Northrop Grumman. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Northrop Grumman analysts - going out to 2026, and you can see them free on our platform here.
You still need to take note of risks, for example - Northrop Grumman has 3 warning signs we think you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
