Northrop Grumman Raises 2020 Guidance

By Dave Sebastian

Northrop Grumman Corp. on Thursday raised its financial outlook for 2020, citing year-to-date performance and assuming that the worst effects of the Covid-19 pandemic occurred in the second quarter.

The defense contractor now expects adjusted per-share earnings of $22 to $22.40 on sales of $35.3 billion to $35.6 billion. It previously expected adjusted earnings of $21.80 to $22.20 on sales of $35 billion to $35.4 billion.

The company sees free cash flow of $3.15 billion to $3.55 billion, up $100 million from the upper end of its previous guidance.

Northrop Grumman said its profit grew for the second quarter as it booked gains in space, aeronautics and mission systems sales, partially offset by a slowdown in production of certain aircraft due to Covid-19.

Shares rose 1.5% to $320 in premarket trading.

Write to Dave Sebastian at dave.sebastian@wsj.com

(END) Dow Jones Newswires

July 30, 2020 07:11 ET (11:11 GMT)

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