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Lockheed Martin (LMT) Beats Q3 Earnings, Sales Estimates

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Lockheed Martin Corporation (LMT - Free Report) is the largest U.S. defense contractor with a platform-centric focus that guarantees a steady inflow of follow-on orders from a leveraged presence in the Army, Air Force, Navy and IT programs.

However, a large percentage of Lockheed Martin’s business comes from the U.S. government. Hence, any cutback in the domestic defense budget is a potential risk for its future performance.

Estimate Trend & Surprise History

Investors should note that the third quarter Zacks Consensus Estimate for earnings of $2.86 per share has increased by a penny over the last 7 days.

Coming to the earnings surprise, Lockheed Martin Corporation has surpassed the Zacks Consensus Estimate in the last four quarters, resulting in a positive average surprise of 5.45%.

 

LOCKHEED MARTIN Price and EPS Surprise

LOCKHEED MARTIN Price and EPS Surprise | LOCKHEED MARTIN Quote

 

Zacks Rank: Currently, Lockheed Martin has a Zacks Rank #4 (Sell) but that could change following its third quarter 2016 earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

We have highlighted some of the key details from the just-released announcement below:

Earnings: Lockheed Martin beat on earnings. Earnings per share came in at $3.61, beating the Zacks Consensus Estimate of $2.86 by 26.2%.

Revenue: Revenues of $11.55 billion surpassed the Zacks Consensus Estimate of $11.38 billion by 1.5%.

Key Stats to Note: During the third quarter, Lockheed Martin completed the previously announced divestiture of its Information Systems & Global Solutions (IS&GS) business segment. On account of this transaction, the company’s common stock outstanding reduced by approximately 9.4 million shares (by 3%), while it received a one-time special cash payment of $1.8 billion.

Lockheed Martin has raised its revenue guidance for the year to $46.5 billion, from the prior projection in the band of $45−$46.2 billion, adjusted for IS&GS. The company also increased its earnings guidance to $12.10, from previous projection band of $11.15–$11.45; adjusted for IS&GS.   

Stock Price:  Following the earnings release, share prices for the company did not show any movement in the pre-market trading session.

Check back later for our full write up on this Lockheed Martin earnings report later!

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