Northrop Grumman Corp (NYSE:NOC) stock fell 0.40% (As on October 25, 11:21:18 AM UTC-4, Source: Google Finance) after the company posted mixed result for the third quarter of FY 24. Third quarter 2024 net earnings totaled $1.0 billion as compared with $937 million in the third quarter of 2023. Third quarter 2024 operating income increased $104 million, or 10 percent, primarily due to $57 million of higher segment operating income1 and a $40 million increase in the FAS/CAS operating adjustment. Operating margin rate increased to 11.2 percent from 10.4 percent primarily due to benefits associated with the FAS/CAS operating adjustment and a higher segment operating margin rate. Third quarter 2024 net awards totaled $11.7 billion and backlog totaled $84.8 billion. Significant third quarter new awards include $2.7 billion for restricted programs (primarily at Mission Systems, Aeronautics Systems, and Space Systems), $1.6 billion for E-2 and $0.7 billion for certain military ammunition programs. Third quarter 2024 cash provided by operating activities decreased $137 million and third quarter 2024 free cash flow decreased $139 million principally due to higher net federal tax payments.

Moreover, third quarter 2024 Aeronautics Systems sales increased $112 million, or 4 percent, primarily due to higher F-35 production volume largely driven by the timing of materials, increased E-2 fleet sustainment and modernization work, higher Triton LRIP production volume and an increase in Global Hawk sustainment activities. Third quarter 2024 Defense Systems sales increased $34 million, or 2 percent, primarily due to higher volume on the Sentinel program, ramp-up on the Stand-in Attack Weapon (SiAW) program and higher volume on certain military ammunition programs. Third quarter 2024 Mission Systems sales increased $195 million, or 7 percent, primarily due to higher volume on restricted advanced microelectronics and technology programs, increased marine systems sales due, in part, to the timing of materials, and higher Ground/Air Task Oriented Radar (G/ ATOR) volume due to continued ramp-up on full-rate production (FRP) awards. Third quarter 2024 Space Systems sales decreased $83 million, or 3 percent, primarily due to wind-down of our work on the restricted space and NGI programs, which reduced sales by $224 million.

NOC in the third quarter of FY 24 has reported the adjusted earnings per share of $7, beating the analysts’ estimates for the adjusted earnings per share of $6.07, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 2 percent to $10 billion in the third quarter of FY 24, missing the analysts’ estimates for revenue by 2.25%. This is due to higher sales at Mission Systems, Aeronautics Systems and Defense Systems, partially offset by lower sales at Space Systems largely driven by a reduction of $224 million associated with wind-down of the work on the restricted space and NGI programs