Northrop Grumman stock slides on Q3 top and bottom line miss, weak outlook

Northrop Grumman Corp. [s: noc] stock fell 3.9% before market open on Thursday. The defense company earned $5.89 a share, which included an 18 cent unfavorable impact from marketable securities, compared with earnings of $6.63 a share in the same period last year. Analysts surveyed by FactSet were looking for earnings of $6.08 a share. The defense company reported third-quarter revenue of $8.971 billion, compared with sales of $8.72 billion in the same period last year. Analysts surveyed by FactSet were looking for revenue of $9.128 billion. The company said that its sales reflect strong demand and improving trends in labor availability, partially offset by supply chain delays. “Our solid operating performance in the third quarter reflects extensive demand for our capabilities, positive trends in labor availability, and strong program execution,” said Northrop Grumman CEO Kathy Warden, in the earnings release. However, the company expects 2022 sales and earnings per share near the low end of its guidance ranges of approximately $36.2 billion to $36.6 billion and $24.50 to $25.10, respectively.