We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Lockheed (LMT) Beats on Q2 Earnings, Ups '23 Sales View
Read MoreHide Full Article
Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2023 adjusted earnings of $6.73 per share, which surpassed the Zacks Consensus Estimate of $6.43 by 4.7%. The bottom line also improved 6.5% from the year-ago quarter's figure.
The company reported GAAP earnings of $6.63 per share compared with $1.16 in the prior-year period.
Operational Highlights
Net sales amounted to $16.69 billion in the reported quarter, which surpassed the Zacks Consensus Estimate of $15.86 billion by 5.3%. The top line rose 8.1% from $15.45 billion in the year-ago quarter.
Lockheed Martin Corporation Price, Consensus and EPS Surprise
Lockheed’s backlog as of Jun 25, 2023, was $158.01 billion compared with $145.09 billion at the end of first-quarter 2023.
Our model projected backlog worth $145.84 billion in the second quarter of 2023.
The Aeronautics segment accounted for $58.10 billion of this amount, while Rotary and Mission Systems contributed $35.95 billion. The Missiles and Fire Control, and the Space Systems segments contributed $34.02 billion and $29.95 billion, respectively.
Segmental Performance
Aeronautics: Sales improved 17.3% year over year to $6.88 billion, primarily driven by higher volume of production contracts for F-35 jets as well as higher volume of sustainment contracts for C-130 program. Higher net sales from classified programs also added to this unit’s quarterly sales growth.
The segment’s operating profit rose 17% year over year to $718 million. The operating margin, however, contracted 10 basis points (bps) to 10.4%.
Missiles and Fire Control: Quarterly sales inched up 0.4% year over year to $2.76 billion. This was driven by higher net sales from tactical and strike missile programs amid lower sales from integrated air and missile defense programs.
The segment’s operating profit decreased 11% year over year to $371 million, while the operating margin contracted 170 bps to 13.5%.
Space Systems: Sales increased 12.1% year over year to $3.17 billion due to higher sales from strategic and missile defense programs, national security space programs and commercial civil space programs.
The segment’s operating profit improved 15% to $312 million. The operating margin expanded 30 bps to 9.9% in the quarter under review.
Rotary and Mission Systems: Quarterly revenues decreased 3% to $3.90 billion on a year-over-year basis. This was primarily due to lower sales from Sikorsky helicopter program on account of lower production volume for Black Hawk helicopters.
The segment’s operating profit declined 2% to $454 million in the reported quarter. The operating margin expanded 10 bps to 11.6% in the same time frame.
Financial Condition
Lockheed’s cash and cash equivalents totaled $3.67 billion at the end of second-quarter 2023 compared with $2.55 billion at the end of 2022.
Cash from operating activities amounted to $2.66 billion during the first six months of 2023 compared with $2.77 billion in the year-ago period.
Long-term debt as of Jun 30, 2023, totaled $17.26 billion, up from $15.43 billion as of Dec 31, 2022.
2023 Guidance
Lockheed has partly raised its financial guidance for 2023. The company now expects revenues of $66.25-$66.75 billion compared with its earlier projection of $65-66 billion. The Zacks Consensus Estimate for full-year revenues is pegged at $65.77 billion, which lies lower than the company’s guided range.
LMT now expects earnings per share (EPS) in the range of $27.00-$27.20, up from the prior guidance of $26.60-$26.90. The Zacks Consensus Estimate for the company’s full-year EPS is pinned at $27.06, lower than the mid-point of the company’s guided range.
Lockheed, however, still expects to generate free cash flow of $6.2 billion during 2023.
Textron (TXT - Free Report) is scheduled to report second-quarter 2023 results on Jul 27, before market open. The Zacks Consensus Estimate for revenues is pegged at $3.40 billion, indicating a 7.8% increase from the year-ago quarter’s reported figure.
The consensus mark for Textron’s earnings is pegged at $1.20 per share, indicating a 20% improvement from the prior-year period's recorded number.
The Boeing Company (BA - Free Report) is set to release second-quarter 2023 results on Jul 26, before the opening bell. The Zacks Consensus Estimate for total revenues is pegged at $17.99 billion, indicating a 7.8% increase from the year-ago quarter’s reported figure.
The bottom-line estimate for BA is pegged at a loss of 94 cents, indicating a significant deterioration from the year-ago quarter’s reported loss of 37 cents.
Northrop Grumman (NOC - Free Report) is set to release second-quarter 2023 results on Jul 27, before the opening bell. The Zacks Consensus Estimate for total revenues is pegged at $9.32 billion, indicating a 5.9% improvement from the prior-year period’s recorded number.
The Zacks Consensus Estimate for NOC’s earnings is pinned at $5.31 per share, indicating a 12.4% decline from that recorded in the year-ago quarter.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Lockheed (LMT) Beats on Q2 Earnings, Ups '23 Sales View
Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2023 adjusted earnings of $6.73 per share, which surpassed the Zacks Consensus Estimate of $6.43 by 4.7%. The bottom line also improved 6.5% from the year-ago quarter's figure.
The company reported GAAP earnings of $6.63 per share compared with $1.16 in the prior-year period.
Operational Highlights
Net sales amounted to $16.69 billion in the reported quarter, which surpassed the Zacks Consensus Estimate of $15.86 billion by 5.3%. The top line rose 8.1% from $15.45 billion in the year-ago quarter.
Lockheed Martin Corporation Price, Consensus and EPS Surprise
Lockheed Martin Corporation price-consensus-eps-surprise-chart | Lockheed Martin Corporation Quote
Backlog
Lockheed’s backlog as of Jun 25, 2023, was $158.01 billion compared with $145.09 billion at the end of first-quarter 2023.
Our model projected backlog worth $145.84 billion in the second quarter of 2023.
The Aeronautics segment accounted for $58.10 billion of this amount, while Rotary and Mission Systems contributed $35.95 billion. The Missiles and Fire Control, and the Space Systems segments contributed $34.02 billion and $29.95 billion, respectively.
Segmental Performance
Aeronautics: Sales improved 17.3% year over year to $6.88 billion, primarily driven by higher volume of production contracts for F-35 jets as well as higher volume of sustainment contracts for C-130 program. Higher net sales from classified programs also added to this unit’s quarterly sales growth.
The segment’s operating profit rose 17% year over year to $718 million. The operating margin, however, contracted 10 basis points (bps) to 10.4%.
Missiles and Fire Control: Quarterly sales inched up 0.4% year over year to $2.76 billion. This was driven by higher net sales from tactical and strike missile programs amid lower sales from integrated air and missile defense programs.
The segment’s operating profit decreased 11% year over year to $371 million, while the operating margin contracted 170 bps to 13.5%.
Space Systems: Sales increased 12.1% year over year to $3.17 billion due to higher sales from strategic and missile defense programs, national security space programs and commercial civil space programs.
The segment’s operating profit improved 15% to $312 million. The operating margin expanded 30 bps to 9.9% in the quarter under review.
Rotary and Mission Systems: Quarterly revenues decreased 3% to $3.90 billion on a year-over-year basis. This was primarily due to lower sales from Sikorsky helicopter program on account of lower production volume for Black Hawk helicopters.
The segment’s operating profit declined 2% to $454 million in the reported quarter. The operating margin expanded 10 bps to 11.6% in the same time frame.
Financial Condition
Lockheed’s cash and cash equivalents totaled $3.67 billion at the end of second-quarter 2023 compared with $2.55 billion at the end of 2022.
Cash from operating activities amounted to $2.66 billion during the first six months of 2023 compared with $2.77 billion in the year-ago period.
Long-term debt as of Jun 30, 2023, totaled $17.26 billion, up from $15.43 billion as of Dec 31, 2022.
2023 Guidance
Lockheed has partly raised its financial guidance for 2023. The company now expects revenues of $66.25-$66.75 billion compared with its earlier projection of $65-66 billion. The Zacks Consensus Estimate for full-year revenues is pegged at $65.77 billion, which lies lower than the company’s guided range.
LMT now expects earnings per share (EPS) in the range of $27.00-$27.20, up from the prior guidance of $26.60-$26.90. The Zacks Consensus Estimate for the company’s full-year EPS is pinned at $27.06, lower than the mid-point of the company’s guided range.
Lockheed, however, still expects to generate free cash flow of $6.2 billion during 2023.
Zacks Rank
Lockheed currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Q2 Defense Earnings
Textron (TXT - Free Report) is scheduled to report second-quarter 2023 results on Jul 27, before market open. The Zacks Consensus Estimate for revenues is pegged at $3.40 billion, indicating a 7.8% increase from the year-ago quarter’s reported figure.
The consensus mark for Textron’s earnings is pegged at $1.20 per share, indicating a 20% improvement from the prior-year period's recorded number.
The Boeing Company (BA - Free Report) is set to release second-quarter 2023 results on Jul 26, before the opening bell. The Zacks Consensus Estimate for total revenues is pegged at $17.99 billion, indicating a 7.8% increase from the year-ago quarter’s reported figure.
The bottom-line estimate for BA is pegged at a loss of 94 cents, indicating a significant deterioration from the year-ago quarter’s reported loss of 37 cents.
Northrop Grumman (NOC - Free Report) is set to release second-quarter 2023 results on Jul 27, before the opening bell. The Zacks Consensus Estimate for total revenues is pegged at $9.32 billion, indicating a 5.9% improvement from the prior-year period’s recorded number.
The Zacks Consensus Estimate for NOC’s earnings is pinned at $5.31 per share, indicating a 12.4% decline from that recorded in the year-ago quarter.