Shares of Northrop Grumman (NYSE:NOC) climbed over 3% in premarket trading Tuesday following the aerospace and defense firm’s announcement of better-than-expected second-quarter earnings and an upgraded full-year outlook.
The company reported Q2 earnings per share of $8.15, well above analysts’ forecast of $6.82. Quarterly revenue hit $10.4 billion, also exceeding the consensus estimate of $10.07 billion.
Northrop posted an operating margin of 13.8%, with its segment operating margin coming in at 11.8%. During the quarter, the company returned more than $700 million to shareholders through dividends and share repurchases.
“The Northrop Grumman team delivered a strong second quarter, with increased sales and outstanding operating performance,” said Kathy Warden, Northrop’s chair, CEO, and president. “With confidence in our team and our ability to deliver for our customers, we are increasing our full-year guidance for segment operating income, EPS and free cash flow.”
The updated outlook now calls for earnings per share between $25.00 and $25.40, up from the previous range of $24.95 to $25.35, slightly above the consensus estimate of $25.20.
Northrop also boosted its forecast for segment operating income to a range of $4.275 billion to $4.375 billion, while projecting free cash flow between $3.05 billion and $3.35 billion.
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