NOC - Why Northrop Grumman Stock Is Getting Bludgeoned Today
2024-01-25 12:24:31 ET
Defense contractor Northrop Grumman 's (NYSE: NOC) most important program is coming in way over budget, and investors are throwing up the white flag. Shares of Northrop Grumman traded down 7% as of 11 a.m. ET Thursday after the company reported a fourth-quarter loss and provided a gloomy outlook for its brand new bomber.
Northrop Grumman is one of then nation's largest defense contractors and is the prime contractor for two-thirds of the U.S.'s planned nuclear triad refresh, which is considered a top government priority. Northrop has been tasked with developing a new bomber and new missile designed to act as a deterrent against a potential nuclear attack.
But the company's recent results leave a lot to be desired. Northrop recorded a fourth-quarter loss of $1.45 per share, significantly below Wall Street's expectations for a $5.80-per-share profit. The primary culprit was a $1.56 billion charge taken against the B-21 Raider bomber it is building for the U.S. Air Force, a reflection of spiraling costs since the contract was awarded back in 2015.
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Why Northrop Grumman Stock Is Getting Bludgeoned Today