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Lockheed Martin (LMT) Q1 Earnings Top Estimates, Sales Down Y/Y
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Lockheed Martin Corporation (LMT - Free Report) reported first-quarter 2022 earnings of $6.44 per share, which surpassed the Zacks Consensus Estimate of $6.22 by 3.5%. The bottom line however declined 1.8% year over year.
Operational Highlights
In the reported quarter, net sales amounted to $14.96 billion, which missed the Zacks Consensus Estimate of $15.53 billion by 3.7%. The top line also declined 8% from $16.26 billion reported in the year-ago quarter.
Lockheed Martin Corporation Price, Consensus and EPS Surprise
Lockheed Martin ended the first quarter of 2022 (on Mar 27, 2022) with $134.23 billion in backlog compared with $135.36 billion at the end of fourth-quarter 2021. Of this, the Aeronautics segment accounted for $46.12 billion, while Rotary and Mission Systems contributed $34.26 billion. Meanwhile, Space Systems and the Missiles and Fire Control segments contributed $27.60 billion and $26.26 billion, respectively.
Segmental Performance
Aeronautics: Sales inched up 0.2% year over year to $6.40 billion, primarily due to higher net sales from the F-16 program.
The segment’s operating profit declined 2% year over year to $679 million. The operating margin contracted 30 basis points (bps) to 10.6%.
Missiles and Fire Control: Quarterly sales declined 10.8% year over year to $2.45 billion due to lower sales at integrated air and missile defense programs, tactical and strike missile programs, sensors and global sustainment programs as well as Sniper Advanced Targeting Pod.
The segment’s operating profit declined 3% year over year to $384 million, while the operating margin expanded 130 bps to 15.7%.
Space Systems: Sales decreased 15.1% year over year to $2.56 billion in the first quarter. The decrease was primarily due to lower net sales at the Atomic Weapons Establishment program as it was no longer included in the company's financial results beginning in the fourth quarter of 2021. Also, lower net sales from commercial civil space programs contributed to lower sales of the segment.
The segment’s operating profit improved 7.9% to $245 million. The operating margin expanded 210 bps to 9.6% in the quarter under review.
Rotary and Mission Systems: Quarterly revenues declined 13.5% on a year-over-year basis to $3.55 billion. The decrease was primarily due to lower sales for training and logistics solutions (TLS) programs, integrated warfare systems and sensors (IWSS) programs, various C6ISR programs and Sikorsky helicopter programs.
The segment’s operating profit dropped 19.6% to $348 million in the first quarter. The operating margin contracted 70 bps to 9.8% in the reported quarter.
Financial Condition
Lockheed Martin’s cash and cash equivalents totaled $1.88 billion at the end of first-quarter 2022 compared with $3.60 billion at the end of 2021.
Cash from operations at the end of first-quarter 2022 amounted to $1.41 billion compared with $1.75 billion a year ago.
Guidance
Lockheed Martin reiterated its financial guidance for 2022.
The company reiterated its revenue guidance of approximately $66 billion for 2022. The Zacks Consensus Estimate for full-year revenues, which is pegged at $66.35 billion, is slightly more than the company’s guidance.
Earnings per share are still anticipated at $26.70 for 2022. The Zacks Consensus Estimate for the company’s full-year earnings, which stands at $26.75 per share, lies above LMT’s guidance.
Boeing (BA - Free Report) is slated to release its first-quarter 2022 results on Apr 27. Boeing reported a loss of $7.69 in the fourth quarter of 2021, missing the Zacks Consensus Estimate of a loss of 9 cents.
The long-term earnings growth rate of BA stands at 4%. The Zacks Consensus Estimate for Boeing’s first-quarter sales and earnings is pegged at $15.68 billion and a loss of 25 cents per share, respectively.
General Dynamics (GD - Free Report) is scheduled to release its first-quarter 2022 results on Apr 27. It has a four-quarter average earnings surprise of 3.72%.
General Dynamics boasts a long-term earnings growth rate of 9.6%. The Zacks Consensus Estimate for GD’s first-quarter sales and earnings is pegged at $8.95 billion and $2.49 per share, respectively.
Northrop Grumman (NOC - Free Report) is slated to release its first-quarter 2022 results on Apr 28. The long-term earnings growth rate of Northrop is pegged at 6.2%.
Northrop has a four-quarter average earnings surprise of 11.05%. The Zacks Consensus Estimate for NOC’s first-quarter sales and earnings is pegged at $8.90 billion and $5.94 per share, respectively.
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Lockheed Martin (LMT) Q1 Earnings Top Estimates, Sales Down Y/Y
Lockheed Martin Corporation (LMT - Free Report) reported first-quarter 2022 earnings of $6.44 per share, which surpassed the Zacks Consensus Estimate of $6.22 by 3.5%. The bottom line however declined 1.8% year over year.
Operational Highlights
In the reported quarter, net sales amounted to $14.96 billion, which missed the Zacks Consensus Estimate of $15.53 billion by 3.7%. The top line also declined 8% from $16.26 billion reported in the year-ago quarter.
Lockheed Martin Corporation Price, Consensus and EPS Surprise
Lockheed Martin Corporation price-consensus-eps-surprise-chart | Lockheed Martin Corporation Quote
Backlog
Lockheed Martin ended the first quarter of 2022 (on Mar 27, 2022) with $134.23 billion in backlog compared with $135.36 billion at the end of fourth-quarter 2021. Of this, the Aeronautics segment accounted for $46.12 billion, while Rotary and Mission Systems contributed $34.26 billion. Meanwhile, Space Systems and the Missiles and Fire Control segments contributed $27.60 billion and $26.26 billion, respectively.
Segmental Performance
Aeronautics: Sales inched up 0.2% year over year to $6.40 billion, primarily due to higher net sales from the F-16 program.
The segment’s operating profit declined 2% year over year to $679 million. The operating margin contracted 30 basis points (bps) to 10.6%.
Missiles and Fire Control: Quarterly sales declined 10.8% year over year to $2.45 billion due to lower sales at integrated air and missile defense programs, tactical and strike missile programs, sensors and global sustainment programs as well as Sniper Advanced Targeting Pod.
The segment’s operating profit declined 3% year over year to $384 million, while the operating margin expanded 130 bps to 15.7%.
Space Systems: Sales decreased 15.1% year over year to $2.56 billion in the first quarter. The decrease was primarily due to lower net sales at the Atomic Weapons Establishment program as it was no longer included in the company's financial results beginning in the fourth quarter of 2021. Also, lower net sales from commercial civil space programs contributed to lower sales of the segment.
The segment’s operating profit improved 7.9% to $245 million. The operating margin expanded 210 bps to 9.6% in the quarter under review.
Rotary and Mission Systems: Quarterly revenues declined 13.5% on a year-over-year basis to $3.55 billion. The decrease was primarily due to lower sales for training and logistics solutions (TLS) programs, integrated warfare systems and sensors (IWSS) programs, various C6ISR programs and Sikorsky helicopter programs.
The segment’s operating profit dropped 19.6% to $348 million in the first quarter. The operating margin contracted 70 bps to 9.8% in the reported quarter.
Financial Condition
Lockheed Martin’s cash and cash equivalents totaled $1.88 billion at the end of first-quarter 2022 compared with $3.60 billion at the end of 2021.
Cash from operations at the end of first-quarter 2022 amounted to $1.41 billion compared with $1.75 billion a year ago.
Guidance
Lockheed Martin reiterated its financial guidance for 2022.
The company reiterated its revenue guidance of approximately $66 billion for 2022. The Zacks Consensus Estimate for full-year revenues, which is pegged at $66.35 billion, is slightly more than the company’s guidance.
Earnings per share are still anticipated at $26.70 for 2022. The Zacks Consensus Estimate for the company’s full-year earnings, which stands at $26.75 per share, lies above LMT’s guidance.
Zacks Rank
Lockheed Martin currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Q1 Defense Releases
Boeing (BA - Free Report) is slated to release its first-quarter 2022 results on Apr 27. Boeing reported a loss of $7.69 in the fourth quarter of 2021, missing the Zacks Consensus Estimate of a loss of 9 cents.
The long-term earnings growth rate of BA stands at 4%. The Zacks Consensus Estimate for Boeing’s first-quarter sales and earnings is pegged at $15.68 billion and a loss of 25 cents per share, respectively.
General Dynamics (GD - Free Report) is scheduled to release its first-quarter 2022 results on Apr 27. It has a four-quarter average earnings surprise of 3.72%.
General Dynamics boasts a long-term earnings growth rate of 9.6%. The Zacks Consensus Estimate for GD’s first-quarter sales and earnings is pegged at $8.95 billion and $2.49 per share, respectively.
Northrop Grumman (NOC - Free Report) is slated to release its first-quarter 2022 results on Apr 28. The long-term earnings growth rate of Northrop is pegged at 6.2%.
Northrop has a four-quarter average earnings surprise of 11.05%. The Zacks Consensus Estimate for NOC’s first-quarter sales and earnings is pegged at $8.90 billion and $5.94 per share, respectively.