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Will Aeronautics Unit Boost Lockheed's (LMT) Q1 Earnings?
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Lockheed Martin Corporation (LMT - Free Report) is slated to release first-quarter 2021 results on Apr 20, before the opening bell.
The company’s largest segment, Aeronautics, is expected to have generated solid growth in the soon-to-be-reported quarter. Steady growth in other segments is also expected to boost overall results.
Let's see how things have shaped up prior to this announcement.
Aeronautics Unit: Key Catalyst
The Aeronautics segment has been a major growth catalyst for this defense contractor for decades. It primarily manufactures advanced, combat-proven jets and comprises almost 40% of the company’s top line. Lockheed Martin boasts a history of delivering notable number of military jets every quarter. We expect a similar trend to have taken place in the first quarter as well. This should get reflected in the form of solid top-line growth for the Aeronautics business division for the soon-to-be-reported quarter.
The Zacks Consensus Estimate for this unit’s revenues stands at $6,654 million, indicating a 4.5% improvement from the prior-year reported figure.
Lockheed Martin Corporation Price and EPS Surprise
We expect Lockheed Martin’s Missiles and Fire Control (MFC) segment, which provides critical missile defense support to the United States and foreign allies, to have delivered a strong operational performance in the soon-to-be-reported quarter.
Notably, production volume in Tactical Strike Missiles and air & missile defense lines of business can be expected to have boosted the MFC unit’s top-line performance in the first quarter.
The Zacks Consensus Estimate for MFC segment revenues is currently pegged at $2,755 million, implying a 5.2% increase from the year-ago reported figure.
Earnings and Revenue Estimates
Solid revenue growth in each of the company’s business segments is likely to have boosted Lockheed’s overall top line in the to-be-reported quarter. The Zacks Consensus Estimate for the company’s first-quarter revenues stands at $16.46 billion, indicating a 5.2% increase from the year-earlier reported figure.
The estimated top-line growth and its resilient portfolio make us confident about the company’s ability to generate solid bottom-line growth. The Zacks Consensus Estimate for the defense giant’s first-quarter earnings is pegged at $6.34 per share, suggesting an increase of 4.3% from the prior-year reported number.
In December, Lockheed agreed to buy Aerojet Rocketdyne . We may expect further progress in this acquisition, once Lockheed releases first-quarter results.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Lockheed this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But this is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are a couple of defense companies you may want to consider, as these have the right combination of elements to post an earnings beat this season:
Raytheon Technologies (RTX - Free Report) has an Earnings ESP of +12.50% and a Zacks Rank #2. The company is set to announce first-quarter 2021 earnings on Apr 27.
CAE Inc. (CAE - Free Report) has an Earnings ESP of +8.57% and a Zacks Rank #2. The company is expected to announce fourth-quarter fiscal 2021 results soon.
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Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022. Click here for the 4 trades >>
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Will Aeronautics Unit Boost Lockheed's (LMT) Q1 Earnings?
Lockheed Martin Corporation (LMT - Free Report) is slated to release first-quarter 2021 results on Apr 20, before the opening bell.
The company’s largest segment, Aeronautics, is expected to have generated solid growth in the soon-to-be-reported quarter. Steady growth in other segments is also expected to boost overall results.
Let's see how things have shaped up prior to this announcement.
Aeronautics Unit: Key Catalyst
The Aeronautics segment has been a major growth catalyst for this defense contractor for decades. It primarily manufactures advanced, combat-proven jets and comprises almost 40% of the company’s top line. Lockheed Martin boasts a history of delivering notable number of military jets every quarter. We expect a similar trend to have taken place in the first quarter as well. This should get reflected in the form of solid top-line growth for the Aeronautics business division for the soon-to-be-reported quarter.
The Zacks Consensus Estimate for this unit’s revenues stands at $6,654 million, indicating a 4.5% improvement from the prior-year reported figure.
Lockheed Martin Corporation Price and EPS Surprise
Lockheed Martin Corporation price-eps-surprise | Lockheed Martin Corporation Quote
MFC Unit: Another Growth Driver
We expect Lockheed Martin’s Missiles and Fire Control (MFC) segment, which provides critical missile defense support to the United States and foreign allies, to have delivered a strong operational performance in the soon-to-be-reported quarter.
Notably, production volume in Tactical Strike Missiles and air & missile defense lines of business can be expected to have boosted the MFC unit’s top-line performance in the first quarter.
The Zacks Consensus Estimate for MFC segment revenues is currently pegged at $2,755 million, implying a 5.2% increase from the year-ago reported figure.
Earnings and Revenue Estimates
Solid revenue growth in each of the company’s business segments is likely to have boosted Lockheed’s overall top line in the to-be-reported quarter. The Zacks Consensus Estimate for the company’s first-quarter revenues stands at $16.46 billion, indicating a 5.2% increase from the year-earlier reported figure.
The estimated top-line growth and its resilient portfolio make us confident about the company’s ability to generate solid bottom-line growth. The Zacks Consensus Estimate for the defense giant’s first-quarter earnings is pegged at $6.34 per share, suggesting an increase of 4.3% from the prior-year reported number.
In December, Lockheed agreed to buy Aerojet Rocketdyne . We may expect further progress in this acquisition, once Lockheed releases first-quarter results.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Lockheed this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But this is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Lockheed has an Earnings ESP of 0.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are a couple of defense companies you may want to consider, as these have the right combination of elements to post an earnings beat this season:
Raytheon Technologies (RTX - Free Report) has an Earnings ESP of +12.50% and a Zacks Rank #2. The company is set to announce first-quarter 2021 earnings on Apr 27.
CAE Inc. (CAE - Free Report) has an Earnings ESP of +8.57% and a Zacks Rank #2. The company is expected to announce fourth-quarter fiscal 2021 results soon.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>