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Lockheed Martin (LMT) Tops Q1 Earnings, Misses on Sales

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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 first quarter Zacks Consensus Estimate for earnings of $2.76 per share has increased by 3 cents 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 12.41%.

Zacks Rank: Currently, Lockheed Martin has a Zacks Rank #2 (Buy) but that could change following its first quarter 2017 earnings report which has just released. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank 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 $3.00, beating the Zacks Consensus Estimate of $2.76 by 8.7%.
 
Revenue: Revenues of $11.01 billion missed the Zacks Consensus Estimate of $11.26 billion by 2.2%.

Key Stats to Note: During the first quarter, net sales from Lockheed Martin’s Aeronautics segment increased 8.1% year over year, while the same form Rotary and Missions Systems increased 3.2%. Sales from Space Systems improved 10.8% and sales from Missiles and Fire Control segment improved 3.8%. The company repurchased 1.9 million shares for $500 million and paid cash dividends worth $544 million, during the quarter.

Stock Price:  Following the earnings release, share prices for the company dropped 0.8% 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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