Northrop Grumman Q4 profit drops despite sales growth

Northrop Grumman (NYSE: NOC) has said its fourth-quarter earnings declined despite a double-digit increase in sales. The aerospace company also provided guidance for fiscal 2023.

December-quarter sales moved up 16% year-over-year to $10.03 billion, reflecting broad-based growth across all operating segments. The management expects an increase in sales for fiscal 2023.

Despite the impressive sales performance, fourth-quarter net profit declined to $2.08 billion or $13.46 per share from $2.71 billion or $17.14 per share in the corresponding period of the prior year. Meanwhile, MTM-adjusted earnings increased to $7.50 per share from $6.00 per share last year.

“Given our proven ability to competitively win, hire and perform, we’re raising our sales outlook for 2023 and expect to deliver strong multi-year cash flow growth. We are focused on executing our strategy, investing in the capabilities and capacity our customers need, and returning a significant portion of our growing cash flows to our shareholders,” said the company’s CEO Kathy Warden.