Zacks Research Predicts Weaker Earnings for Northrop Grumman

Key Points

• Zacks Research has slashed its Q3 2025 earnings per share estimate for Northrop Grumman from $7.64 to $5.96, reflecting diminished expectations for the aerospace company's performance.
• Northrop Grumman's recent earnings report for Q2 surpassed estimates, with earnings per share of $7.11 on revenues of $10.35 billion, an increase from the same period last year.
• Despite the negative earnings forecast, various analysts have set price targets between $571.00 and $625.00, with a consensus rating of "Moderate Buy."

Northrop Grumman Corporation (NYSE:NOC - Free Report) - Stock analysts at Zacks Research reduced their Q3 2025 earnings per share (EPS) estimates for Northrop Grumman in a report issued on Tuesday, August 12th. Zacks Research analyst A. Dutta now anticipates that the aerospace company will post earnings of $5.96 per share for the quarter, down from their prior forecast of $7.64. 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 Q4 2025 earnings at $6.25 EPS, FY2025 earnings at $25.39 EPS, Q2 2026 earnings at $5.46 EPS, Q3 2026 earnings at $9.45 EPS, Q4 2026 earnings at $7.03 EPS and Q2 2027 earnings at $7.88 EPS.

Northrop Grumman (NYSE:NOC - Get Free Report) last posted its earnings results on Tuesday, July 22nd. The aerospace company reported $7.11 earnings per share for the quarter, topping the consensus estimate of $6.84 by $0.27. Northrop Grumman had a return on equity of 25.52% and a net margin of 9.74%. The firm had revenue of $10.35 billion during the quarter, compared to analyst estimates of $10.15 billion. During the same period in the previous year, the company earned $6.36 EPS. The company's revenue for the quarter was up 1.3% on a year-over-year basis.

Several other equities research analysts also recently issued reports on the company. Barclays raised their price target on Northrop Grumman from $500.00 to $580.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 29th. UBS Group decreased their target price on Northrop Grumman from $583.00 to $571.00 and set a "buy" rating for the company in a research note on Wednesday, April 23rd. Morgan Stanley lifted their price target on Northrop Grumman from $580.00 to $625.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 16th. Truist Financial reiterated a "buy" rating and set a $625.00 price target (up from $550.00) on shares of Northrop Grumman in a report on Wednesday, July 23rd. Finally, Wells Fargo & Company reissued an "overweight" rating on shares of Northrop Grumman in a research report on Tuesday, July 22nd. Ten research analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, Northrop Grumman has an average rating of "Moderate Buy" and a consensus price target of $586.79.

Northrop Grumman Price Performance

NYSE NOC opened at $581.86 on Thursday. Northrop Grumman has a 1 year low of $426.24 and a 1 year high of $594.68. The company has a fifty day simple moving average of $528.25 and a 200 day simple moving average of $499.57. The company has a current ratio of 1.04, a quick ratio of 0.93 and a debt-to-equity ratio of 0.98. The company has a market cap of $83.31 billion, a P/E ratio of 21.45, a P/E/G ratio of 5.50 and a beta of 0.15.

Institutional Trading of Northrop Grumman

Several institutional investors have recently bought and sold shares of the stock. Brighton Jones LLC grew its holdings in shares of Northrop Grumman by 176.3% in the 4th quarter. Brighton Jones LLC now owns 2,970 shares of the aerospace company's stock worth $1,394,000 after purchasing an additional 1,895 shares during the last quarter. Bank Pictet & Cie Europe AG grew its stake in Northrop Grumman by 2.2% during the fourth quarter. Bank Pictet & Cie Europe AG now owns 1,006 shares of the aerospace company's stock worth $472,000 after buying an additional 22 shares during the last quarter. Townsquare Capital LLC increased its holdings in shares of Northrop Grumman by 2.6% during the fourth quarter. Townsquare Capital LLC now owns 5,530 shares of the aerospace company's stock worth $2,595,000 after buying an additional 140 shares in the last quarter. Mariner LLC raised its stake in shares of Northrop Grumman by 0.6% in the fourth quarter. Mariner LLC now owns 39,319 shares of the aerospace company's stock valued at $18,452,000 after acquiring an additional 218 shares during the last quarter. Finally, CreativeOne Wealth LLC boosted its holdings in shares of Northrop Grumman by 7.7% in the 4th quarter. CreativeOne Wealth LLC now owns 3,106 shares of the aerospace company's stock worth $1,457,000 after acquiring an additional 222 shares in the last quarter. Institutional investors and hedge funds own 83.40% of the company's stock.

Insider Buying and Selling at Northrop Grumman

In other Northrop Grumman news, CEO Kathy J. Warden sold 7,500 shares of Northrop Grumman stock in a transaction that occurred on Friday, June 13th. The stock was sold at an average price of $505.77, for a total transaction of $3,793,275.00. Following the sale, the chief executive officer directly owned 201,602 shares of the company's stock, valued at approximately $101,964,243.54. The trade was a 3.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Roshan S. Roeder sold 991 shares of the company's stock in a transaction that occurred on Wednesday, June 4th. The shares were sold at an average price of $490.00, for a total value of $485,590.00. Following the completion of the sale, the vice president owned 319 shares in the company, valued at approximately $156,310. This represents a 75.65% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 16,536 shares of company stock valued at $8,306,857 over the last quarter. 0.23% of the stock is currently owned by insiders.

Northrop Grumman Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, June 18th. Stockholders of record on Monday, June 2nd were issued a dividend of $2.31 per share. This represents a $9.24 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date of this dividend was Monday, June 2nd. This is a positive change from Northrop Grumman's previous quarterly dividend of $2.06. Northrop Grumman's payout ratio is 34.06%.

Northrop Grumman Company Profile

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.

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