Northrop pegs full-year sales, earnings at lower end of guidance
Oct 27 (Reuters) – U.S. defense contractor Northrop Grumman Corp (CNP.N) On Thursday, he said he expected full-year sales and profits to be near the lower end of his forecast, amid ongoing supply chain issues and higher costs. which weighed on profits across the sector.
Shares of the company were down 3.8% at $511 before the bell.
Northrop had forecast 2022 sales of $36.2 billion to $36.6 billion and earnings per share of $24.50 to $25.10.
Defense companies, still reeling from rising costs and labor shortages, continue to suffer from supply chain constraints that have impacted the production of these companies and their suppliers .
Northrop, which struggled with labor issues caused by the Omicron variant of COVID-19 earlier this year, said it now sees improving labor availability trends. work. Read more
Revenue at its Aeronautics Systems unit, which makes military aircraft such as the B-21 Raider, fell about 7% to $2.54 billion in the third quarter ended September 30, due to lower sales aircraft and autonomous aircraft systems.
Overall revenue rose 3% in the quarter to $8.97 billion, but beat analysts’ average expectations of $9.13 billion, according to Refinitiv data.
“The space segment will remain the primary driver over the next two years with GBSD, the Space Development Agency wins,” Wolfe Research analyst Myles Walton wrote in a note earlier this month.
Space Systems division sales, helped by increased demand for space exploration, rose about 18% to $3.16 billion, helping the Falls Church, Va.-based company offset lower sales of aeronautical and defense units. Read more
Northrop reported a 14% drop in quarterly adjusted net income to $915 million, or $5.89 per share, below expectations of $6.11 per share.
Year-to-date, its orders-to-bills ratio, which is a ratio of orders received to units shipped and billed, was 1.14.
Reporting by Nathan Gomes in Bengaluru; edited by Milla Nissi
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