Lockheed Martin Corporation (NYSE:LMT) Surpasses Financial Expectations

Lockheed Martin Corporation (NYSE:LMT), a leading player in the aerospace and defense industry, is gearing up for its quarterly earnings release on April 22, 2025. Analysts are projecting an earnings per share (EPS) of $6.32 and revenue of approximately $17.8 billion.

Recently, the company experienced a significant executive change, with CFO Jay Malave departing. This led to a 6% drop in the stock price at market opening, though it later recovered to a 2% decline. Despite this, Lockheed Martin has reassured investors by reaffirming its 2025 guidance.

Evan Scott, a 26-year veteran of Lockheed Martin, has been appointed as the new CFO. Scott's extensive experience, including roles as treasurer and CFO of two business units, positions him well to navigate the company's financial landscape. His appointment aims to stabilize investor confidence during this transition.

Lockheed Martin's financial metrics provide insight into its market position. The company has a price-to-earnings (P/E) ratio of 20.53 and a price-to-sales ratio of 1.53. These figures reflect the market's valuation of its earnings and revenue. The enterprise value to sales ratio is 1.78, while the enterprise value to operating cash flow ratio is 18.17.

The company's financial leverage is indicated by a debt-to-equity ratio of 3.20. This suggests a significant reliance on debt financing. Additionally, Lockheed Martin's current ratio of 1.13 shows its ability to cover short-term liabilities with short-term assets, ensuring operational stability.

• Wells Fargo maintains an Equal-Weight rating on Lockheed Martin Corporation (NYSE:LMT), with the stock priced at $479.38.
• Increased defense spending in Europe, particularly the "REARM Europe" program, has positively impacted Lockheed Martin's stock, leading to a 3% increase.
• Lockheed Martin's current trading price is $479.17, with a year-high of $618.95 and a low of $419.70.

Lockheed Martin Corporation (NYSE:LMT) is a leading global aerospace and defense company. It specializes in the research, design, development, manufacture, integration, and sustainment of advanced technology systems, products, and services. The company operates in four business segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space. Lockheed Martin's main competitors include Boeing, Northrop Grumman, and Raytheon Technologies.

On March 10, 2025, Wells Fargo maintained its rating for Lockheed Martin at Equal-Weight, suggesting investors hold the stock. At the time, the stock was priced at $479.38. This recommendation comes amid a backdrop of increased defense spending in Europe, which has positively impacted Lockheed Martin's stock performance. As highlighted by Benzinga, the stock's options activity has been noteworthy, indicating heightened investor interest.

Lockheed Martin's stock experienced a 3% increase following the announcement of Europe's "REARM Europe" program, an 800 billion euro initiative to enhance defense capabilities. This program, announced by European Commission President Ursula von der Leyen, has bolstered investor confidence in defense stocks like Lockheed Martin. In contrast, GE Aerospace's stock declined by 1.6% due to geopolitical tensions affecting its business.

Currently, Lockheed Martin's stock is trading at $479.17, reflecting a 1.17% rise with a $5.52 increase. The stock's price fluctuated between $473.70 and $494.20 during the day. Over the past year, it has seen a high of $618.95 and a low of $419.70. The company's market capitalization stands at approximately $112.79 billion, with a trading volume of 2,281,674 shares, indicating strong market activity.

Lockheed Martin (NYSE:LMT) saw its shares drop over 4% in premarket trading Tuesday after the defense giant reported lower-than-expected fourth-quarter sales and issued a profit forecast for 2025 that fell short of Wall Street expectations.

In the fourth quarter, the company posted earnings per share of $7.67, surpassing analyst estimates of $6.58. However, revenue for the period totaled $18.6 billion, narrowly missing the consensus estimate of $18.84 billion. Net earnings for the quarter dropped sharply to $527 million, or $2.22 per share, down from $1.9 billion, or $7.58 per share, in the same period in 2023. The decrease was driven by a $1.7 billion loss related to classified programs.

Operational cash flow also took a significant hit, falling 57% year-over-year to $1.02 billion, well below the expected $1.79 billion. Despite these setbacks, the company reported a backlog of $176.04 billion, a 9.6% increase year-over-year, reflecting strong global demand for its advanced defense technologies.

CEO Jim Taiclet highlighted the company’s achievements in 2024, noting 5% sales growth and record-high backlog figures as evidence of robust demand. He also emphasized Lockheed Martin’s commitment to shareholder returns, stating that the company once again returned over 100% of its free cash flow to shareholders.

Looking ahead, Lockheed Martin projected 2025 earnings per share in the range of $27.00 to $27.30, below the consensus estimate of $27.82. Revenue guidance was set between $73.75 billion and $74.75 billion, with the midpoint aligning closely with Wall Street expectations of $74 billion.

• Deutsche Bank downgraded Lockheed Martin Corporation (NYSE:LMT) from a "Buy" to a "Hold" rating, reflecting concerns about the company's performance and market position.
• Despite the downgrade, Lockheed Martin's stock showed resilience, closing at $485.94, a 0.53% increase.
• The stock has faced a 16.1% decline over the past three months, underperforming compared to its competitors and the broader market.

Lockheed Martin Corporation (NYSE:LMT) is a leading global aerospace and defense company. It specializes in the research, design, development, manufacture, integration, and sustainment of advanced technology systems, products, and services. The company operates in four business segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space. Lockheed Martin competes with other major aerospace manufacturers like Boeing, Airbus, and Embraer.

On January 2, 2025, Deutsche Bank downgraded Lockheed Martin from a "Buy" to a "Hold" rating, with the stock priced at $489.02. This downgrade reflects concerns about the company's recent performance and market position. Despite this, Lockheed Martin's stock showed resilience, closing at $485.94, a 0.53% increase from the previous day, as highlighted by Zacks.

Lockheed Martin's stock has faced challenges, with a 16.1% decline over the past three months. This is worse than the Zacks Aerospace-Defense industry's 7.2% decline and the broader Zacks Aerospace sector's 3.9% loss. In contrast, the S&P 500 gained 5.6% during the same period. Competitors like Boeing, Airbus, and Embraer have performed better, with increases of 18.7%, 10.6%, and 3%, respectively.

The stock's recent trading range was between $482 and $486.53, with a market capitalization of approximately $115.18 billion. Over the past year, Lockheed Martin's stock has seen a high of $618.95 and a low of $413.92. Despite its premium valuation, the company's recent struggles suggest investors might consider waiting for a more favorable entry point.

Lockheed Martin (NYSE:LMT) shares fell more than 6% intra-day today after the company reported third-quarter revenues that fell slightly short of analyst estimates. But the defense contractor delivered an optimistic outlook for fiscal year 2024, surpassing Wall Street projections.

For the third quarter, Lockheed Martin reported adjusted earnings per share (EPS) of $6.84, beating the consensus estimate of $6.50. However, revenue came in at $17.1 billion, below the expected $17.37 billion.

Looking ahead, the company raised its fiscal year 2024 EPS guidance to $26.65, exceeding the analyst consensus of $26.44. Additionally, Lockheed Martin lifted its revenue outlook for fiscal 2024 to $71.25 billion, surpassing the previous range of $70.5 billion to $71.5 billion and exceeding the Street estimate of $71.06 billion.

The company highlighted significant strategic progress in the quarter, including a record-breaking $165 billion backlog, the delivery of 48 F-35 fighter jets, and increased missile production. Lockheed Martin also generated $2.1 billion in free cash flow during the quarter, reflecting its strong financial position as it looks forward to the remainder of 2024.

Lockheed Martin Corporation, listed on the NYSE as LMT, is a leading aerospace and defense company. It specializes in the research, design, development, manufacture, integration, and sustainment of advanced technology systems, products, and services. The company competes with other major defense contractors like Boeing and Northrop Grumman.

On October 22, 2024, Lockheed Martin reported earnings per share (EPS) of $6.84, exceeding the estimated $6.50. This performance was highlighted by CNBC's Morgan Brennan on 'Squawk Box'. The EPS also surpassed the Zacks Consensus Estimate of $6.47, showing a positive trend compared to last year's $6.77 per share.

Despite the strong EPS, Lockheed Martin's revenue of $17.1 billion fell short of the estimated $17.4 billion, missing the Zacks Consensus Estimate by 1%. However, this revenue still marked a 1.3% increase from the same period last year, indicating growth in the company's sales.

Lockheed Martin's financial metrics provide further insight into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 20.67, reflecting how the market values its earnings. Its price-to-sales ratio is about 1.95, and the enterprise value to sales ratio is around 2.19, indicating the market's valuation of its revenue and sales.

The company's financial health is also highlighted by its debt-to-equity ratio of approximately 3.12, showing a high level of leverage. The current ratio of around 1.24 suggests Lockheed Martin's ability to cover short-term liabilities with short-term assets. Additionally, the earnings yield of about 4.84% offers insight into the return on investment for shareholders.