Shares of Northrop Grumman (NOC) plummeted 10.69% in pre-market trading on Tuesday after the aerospace and defense contractor reported disappointing first-quarter results and slashed its full-year earnings outlook. The sharp decline came as investors reacted to multiple headwinds facing the company.
Northrop Grumman's Q1 earnings per share came in at $3.32, falling far short of the $6.24 analysts had expected. Excluding a significant charge related to its B-21 stealth bomber program, adjusted earnings were $6.06 per share, still below estimates. Revenue for the quarter declined 7% year-over-year to $9.47 billion, missing Wall Street forecasts of $9.92 billion.
The primary factor weighing on Northrop's results was a $477 million pre-tax loss recognized on the B-21 program due to higher manufacturing costs. This substantial hit to the bottom line raised concerns about potential ongoing challenges with this key defense contract. Additionally, the company lowered its full-year 2025 earnings guidance to a range of $24.95 to $25.35 per share, down from its previous outlook of $27.85 to $28.25 per share. The reduced forecast further dampened investor sentiment and contributed to the stock's steep decline.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.