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Will Space Margins Fuel Lockheed Martin's (LMT) Q4 Earnings?
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Lockheed Martin Corp.’s (LMT - Free Report) Space segment is expected to witness impressive performance for its satellites business line. We expect the company’s fourth-quarter 2018 results, scheduled for release on Jan 29, to duly reflect these factors.
Space Systems: A Major Positive
Of late, Lockheed’s Space business division has been delivering solid results owing to improved performance in the company’s government satellites line of business. We may expect this performance to have continued for the segment in the fourth quarter as well, which should get duly reflected in the upcoming results.
Such improved performance is expected to boost the unit’s operating margin. In line with this, the Zacks Consensus Estimate for the Space segment’s operating profit is pegged at $237 million, reflecting a 2.6% rise year over year.
Other Factors at Play
Operational performance is expected to boost Lockheed Martin’s 2018 bottom line driven by higher segment operating profit as a result of increased sales volume and margin expansion in its business areas. Moreover, lower tax rate should benefit earnings. To this end, we may expect the company’s fourth quarter earnings also to benefit from these numbers.
Lockheed Martin Corporation Price and EPS Surprise
Our proven model clearly shows that Lockheed Martin is likely to beat earnings in the fourth quarter. This is because a stock needs a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen and the company possess both. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Please note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks That Warrant a Look
Here are some companies in the Aerospace sector that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
L3 Technologies is expected to report fourth-quarter 2018 results on Jan 29. The company has an Earnings ESP of +1.19% and a Zacks Rank of 3.
Northrop Grumman (NOC - Free Report) is expected to report fourth-quarter 2018 results on Jan 31. The company has an Earnings ESP of +2.02% and a Zacks Rank #1.
Boeing (BA - Free Report) is expected to report fourth-quarter 2018 results on Jan 30. The company has an Earnings ESP of +0.31% and a Zacks Rank of 1.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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Will Space Margins Fuel Lockheed Martin's (LMT) Q4 Earnings?
Lockheed Martin Corp.’s (LMT - Free Report) Space segment is expected to witness impressive performance for its satellites business line. We expect the company’s fourth-quarter 2018 results, scheduled for release on Jan 29, to duly reflect these factors.
Space Systems: A Major Positive
Of late, Lockheed’s Space business division has been delivering solid results owing to improved performance in the company’s government satellites line of business. We may expect this performance to have continued for the segment in the fourth quarter as well, which should get duly reflected in the upcoming results.
Such improved performance is expected to boost the unit’s operating margin. In line with this, the Zacks Consensus Estimate for the Space segment’s operating profit is pegged at $237 million, reflecting a 2.6% rise year over year.
Other Factors at Play
Operational performance is expected to boost Lockheed Martin’s 2018 bottom line driven by higher segment operating profit as a result of increased sales volume and margin expansion in its business areas. Moreover, lower tax rate should benefit earnings. To this end, we may expect the company’s fourth quarter earnings also to benefit from these numbers.
Lockheed Martin Corporation Price and EPS Surprise
Lockheed Martin Corporation Price and EPS Surprise | Lockheed Martin Corporation Quote
What the Zacks Model Unveils
Our proven model clearly shows that Lockheed Martin is likely to beat earnings in the fourth quarter. This is because a stock needs a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen and the company possess both. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Lockheed Martin has an Earnings ESP of +4.20% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Please note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks That Warrant a Look
Here are some companies in the Aerospace sector that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
L3 Technologies is expected to report fourth-quarter 2018 results on Jan 29. The company has an Earnings ESP of +1.19% and a Zacks Rank of 3.
Northrop Grumman (NOC - Free Report) is expected to report fourth-quarter 2018 results on Jan 31. The company has an Earnings ESP of +2.02% and a Zacks Rank #1.
Boeing (BA - Free Report) is expected to report fourth-quarter 2018 results on Jan 30. The company has an Earnings ESP of +0.31% and a Zacks Rank of 1.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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