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) Down 1% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
It has been about a month since the last earnings report for Lockheed Martin (LMT - Free Report) . Shares have lost about 1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Lockheed due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Lockheed Martin Beats on Q2 Earnings, Hikes 2020 View
Lockheed Martin reported second-quarter 2020 adjusted earnings of $6.13 per share, which surpassed the Zacks Consensus Estimate of $5.71 by 7.4%.
Including an impairment charge of 34 cents, the company reported earnings of $5.79 per share. The bottom line also improved 15.8% from the year-ago quarter’s $5. This year-over-year upside can be attributed to higher sales.
Operational Highlights
In the reported quarter, net sales amounted to $16,220 million, which outshined the Zacks Consensus Estimate of $15,235 million by 6.4%. The reported figure also increased 12.4% from $14,427 million a year ago, driven by sales growth in all its segments.
Backlog
Lockheed Martin ended the second quarter (on Jun 28, 2020) with $150.3 billion in backlog, up 4.4% from $144 billion at the end of 2019. Of this, the Aeronautics segment accounted for $56.2 billion, while Rotary and Mission Systems contributed $37.2 billion. Space Systems contributed $25.9 billion and $31 billion came from the Missiles and Fire Control segment.
Segmental Performance
Aeronautics: Sales increased 17% year over year to $6.53 billion, primarily driven by higher net sales from the F-35 programs. Also, higher volume of classified development contracts contributed to sales growth at this unit.
The segment’s operating profit improved 25% year over year to $739 million.Operating margin expanded 70 basis points (bps) to 11.4%.
Missiles and Fire Control: Quarterly sales improved 16% year over year to $2.80 billion owing to higher sales from tactical and strike missile programs as well as integrated air and missile defense programs.
The segment’s operating profit increased 13% year over year to $370 million, whereas operating margin contracted 40 bps to 13.2%.
Rotary and Mission Systems: Quarterly sales of $4.04 billion improved 7% from the prior-year quarter on account of higher sales for Sikorsky helicopter programs driven by Seahawk production programs and VH-92A production contracts.
The segment’s operating profit improved 24% year over year to $429 million, while operating margin contracted 140 bps to 10.6%.
Space Systems: Sales rose 7% year over year to about $2.87 billion in the first quarter. The uptick was driven bygovernment satellite programs as well as strategic and missile defense programs.
The segment’s operating profit declined 13% to $252 million. Operating margin contracted 190 bps to 8.8% in the reported quarter.
Financial Condition
Lockheed Martin’s cash and cash equivalents totaled $2.86 billion as of Jun 28, 2020, compared with $1.51 million at the end of 2019. Long-term debt was $12.17 billion, higher than the prior-year-end level of $11.40 billion.
Cash from operations at the end of second-quarter 2020 amounted to $4.50 billion compared with $3.33 billion a year ago.
During the reported quarter, the company repurchased 0.7 million shares for $259 million compared with the buyback of 0.6 million shares for $219 million in the year-ago quarter.
Lockheed Martin paid out dividends worth $671 million to its shareholders in the second quarter compared with the year-ago quarter’s figure of $622 million.
Guidance
For 2020, Lockheed Martin has raised its financial guidance. The company currently expects to generate revenues of $63.50-$65 billion, higher than the range of $62.25-$64 billion projected earlier. The Zacks Consensus Estimate for full-year revenues, pegged at $63.51 billion, lies below the midpoint of the updated guidance.
Earnings per share are currently anticipated to be in the band of $23.75-$24.05 for 2020, compared with the earlier range of $23.65-$23.95. The Zacks Consensus Estimate for the company’s full-year earnings, pegged at $24.05, is in line with the higher end of the guidance range.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Lockheed has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Lockheed has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Lockheed (LMT) Down 1% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Lockheed Martin (LMT - Free Report) . Shares have lost about 1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Lockheed due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Lockheed Martin Beats on Q2 Earnings, Hikes 2020 View
Lockheed Martin reported second-quarter 2020 adjusted earnings of $6.13 per share, which surpassed the Zacks Consensus Estimate of $5.71 by 7.4%.
Including an impairment charge of 34 cents, the company reported earnings of $5.79 per share. The bottom line also improved 15.8% from the year-ago quarter’s $5. This year-over-year upside can be attributed to higher sales.
Operational Highlights
In the reported quarter, net sales amounted to $16,220 million, which outshined the Zacks Consensus Estimate of $15,235 million by 6.4%. The reported figure also increased 12.4% from $14,427 million a year ago, driven by sales growth in all its segments.
Backlog
Lockheed Martin ended the second quarter (on Jun 28, 2020) with $150.3 billion in backlog, up 4.4% from $144 billion at the end of 2019. Of this, the Aeronautics segment accounted for $56.2 billion, while Rotary and Mission Systems contributed $37.2 billion. Space Systems contributed $25.9 billion and $31 billion came from the Missiles and Fire Control segment.
Segmental Performance
Aeronautics: Sales increased 17% year over year to $6.53 billion, primarily driven by higher net sales from the F-35 programs. Also, higher volume of classified development contracts contributed to sales growth at this unit.
The segment’s operating profit improved 25% year over year to $739 million.Operating margin expanded 70 basis points (bps) to 11.4%.
Missiles and Fire Control: Quarterly sales improved 16% year over year to $2.80 billion owing to higher sales from tactical and strike missile programs as well as integrated air and missile defense programs.
The segment’s operating profit increased 13% year over year to $370 million, whereas operating margin contracted 40 bps to 13.2%.
Rotary and Mission Systems: Quarterly sales of $4.04 billion improved 7% from the prior-year quarter on account of higher sales for Sikorsky helicopter programs driven by Seahawk production programs and VH-92A production contracts.
The segment’s operating profit improved 24% year over year to $429 million, while operating margin contracted 140 bps to 10.6%.
Space Systems: Sales rose 7% year over year to about $2.87 billion in the first quarter. The uptick was driven bygovernment satellite programs as well as strategic and missile defense programs.
The segment’s operating profit declined 13% to $252 million. Operating margin contracted 190 bps to 8.8% in the reported quarter.
Financial Condition
Lockheed Martin’s cash and cash equivalents totaled $2.86 billion as of Jun 28, 2020, compared with $1.51 million at the end of 2019. Long-term debt was $12.17 billion, higher than the prior-year-end level of $11.40 billion.
Cash from operations at the end of second-quarter 2020 amounted to $4.50 billion compared with $3.33 billion a year ago.
During the reported quarter, the company repurchased 0.7 million shares for $259 million compared with the buyback of 0.6 million shares for $219 million in the year-ago quarter.
Lockheed Martin paid out dividends worth $671 million to its shareholders in the second quarter compared with the year-ago quarter’s figure of $622 million.
Guidance
For 2020, Lockheed Martin has raised its financial guidance. The company currently expects to generate revenues of $63.50-$65 billion, higher than the range of $62.25-$64 billion projected earlier. The Zacks Consensus Estimate for full-year revenues, pegged at $63.51 billion, lies below the midpoint of the updated guidance.
Earnings per share are currently anticipated to be in the band of $23.75-$24.05 for 2020, compared with the earlier range of $23.65-$23.95. The Zacks Consensus Estimate for the company’s full-year earnings, pegged at $24.05, is in line with the higher end of the guidance range.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Lockheed has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Lockheed has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.