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Will Poor Segment Sales Hurt Lockheed (LMT) in Q2 Earnings?
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Lockheed Martin Corporation (LMT - Free Report) is slated to release second-quarter 2022 results on Jul 19, before the opening bell.
Lower sales volume from the majority of the company’s segments is expected to have affected the top-line performance in the soon-to-be-reported quarter. Also, supply chain disruption on account of COVID-19 might have had some impact on Lockheed’s bottom-line performance.
Let's see how things have shaped up prior to this announcement.
Poor Aeronautics Sales to Hurt
The Aeronautics segment, which primarily manufactures advanced, combat-proven jets and comprises almost 40% of the company’s top line, is expected to have delivered poor performance in the soon-to-be-reported quarter.
Lockheed Martin Corporation Price and EPS Surprise
Notably, lower F-35 deliveries might have had hurt revenues from this business division. Moreover, funding constraints are likely to cause a timing impact on financial results of the Aeronautics segment in the quarter.
The Zacks Consensus Estimate for this unit’s revenues for the second quarter stands at $6,523 million, indicating a 2.1% decline from the prior-year reported figure.
Impact of MFC & RMS Performance
Lockheed Martin’s Missiles and Fire Control (MFC) segment provides critical missile defense support to the United States and foreign allies. Factors like supply chain delays in integrated air and missile defense, reduced sustainment revenues for special ops following the troop withdrawal from Afghanistan as well as program transitions in the tactical and strike missile business are expected to hurt the Q2 results of the MFC unit.
The Zacks Consensus Estimate for MFC segment revenues is currently pegged at $2,732 million, implying a 7.2% decline from the year-ago reported figure.
In its Rotary and Mission Systems (RMS) segment, which manufactures combat helicopters, program transitions and COVID-related timing impacts might have had an adverse effect on this division’s Q2 performance.
The Zacks Consensus Estimate for RMS segment revenues is currently pegged at $4,005 million, implying a 5.6% decline from the year-ago reported figure.
Q2 Expectations
Considering the aforementioned developments, the sales decline expected in three major segments of Lockheed Martin may have adversely impacted the company’s overall sales performance in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for the company’s second-quarter revenues stands at $16.05 billion, indicating a 5.7% decrease from the year-earlier reported figure.
Owing to the supply-chain disruption that has been impacting Lockheed for quite some time now, this defense giant will have to make an accelerated $2.2 billion in payments during 2022, which is projected to have an adverse impact on the second-quarter bottom-line performance. Also, poor sales performance might have dragged down its quarterly earnings.
The Zacks Consensus Estimate for the defense giant’s second-quarter earnings is pegged at $1.74 per share, suggesting a deterioration of 75.6% from the prior-year reported number.
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. This is not the case here.
Lockheed has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
LHX delivered a four-quarter average earnings surprise of 2.32%. The Zacks Consensus Estimate for L3Harris’ second-quarter earnings, pegged at $3.16, has moved up 0.3% over the past seven days. LHX boasts a long-term earnings growth rate of 4.4%.
Triumph Group (TGI - Free Report) is scheduled to release its fiscal first-quarter results on Aug 2. It holds a Zacks Rank #3.
The Zacks Consensus Estimate for Triumph Group’s fiscal first-quarter earnings, pegged at 8 cents, has improved 33.3% over the past 30 days. TGI boasts a long-term earnings growth rate of 2.6%.
CAE Inc (CAE - Free Report) is expected to release its fiscal first-quarter results soon. It holds a Zacks Rank #3.
The Zacks Consensus Estimate for CAE’s fiscal first-quarter earnings, pegged at 18 cents, has remained unchanged over the past seven days. CAE boasts a long-term earnings growth rate of 16.9%.
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Will Poor Segment Sales Hurt Lockheed (LMT) in Q2 Earnings?
Lockheed Martin Corporation (LMT - Free Report) is slated to release second-quarter 2022 results on Jul 19, before the opening bell.
Lower sales volume from the majority of the company’s segments is expected to have affected the top-line performance in the soon-to-be-reported quarter. Also, supply chain disruption on account of COVID-19 might have had some impact on Lockheed’s bottom-line performance.
Let's see how things have shaped up prior to this announcement.
Poor Aeronautics Sales to Hurt
The Aeronautics segment, which primarily manufactures advanced, combat-proven jets and comprises almost 40% of the company’s top line, is expected to have delivered poor performance in the soon-to-be-reported quarter.
Lockheed Martin Corporation Price and EPS Surprise
Lockheed Martin Corporation price-eps-surprise | Lockheed Martin Corporation Quote
Notably, lower F-35 deliveries might have had hurt revenues from this business division. Moreover, funding constraints are likely to cause a timing impact on financial results of the Aeronautics segment in the quarter.
The Zacks Consensus Estimate for this unit’s revenues for the second quarter stands at $6,523 million, indicating a 2.1% decline from the prior-year reported figure.
Impact of MFC & RMS Performance
Lockheed Martin’s Missiles and Fire Control (MFC) segment provides critical missile defense support to the United States and foreign allies. Factors like supply chain delays in integrated air and missile defense, reduced sustainment revenues for special ops following the troop withdrawal from Afghanistan as well as program transitions in the tactical and strike missile business are expected to hurt the Q2 results of the MFC unit.
The Zacks Consensus Estimate for MFC segment revenues is currently pegged at $2,732 million, implying a 7.2% decline from the year-ago reported figure.
In its Rotary and Mission Systems (RMS) segment, which manufactures combat helicopters, program transitions and COVID-related timing impacts might have had an adverse effect on this division’s Q2 performance.
The Zacks Consensus Estimate for RMS segment revenues is currently pegged at $4,005 million, implying a 5.6% decline from the year-ago reported figure.
Q2 Expectations
Considering the aforementioned developments, the sales decline expected in three major segments of Lockheed Martin may have adversely impacted the company’s overall sales performance in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for the company’s second-quarter revenues stands at $16.05 billion, indicating a 5.7% decrease from the year-earlier reported figure.
Owing to the supply-chain disruption that has been impacting Lockheed for quite some time now, this defense giant will have to make an accelerated $2.2 billion in payments during 2022, which is projected to have an adverse impact on the second-quarter bottom-line performance. Also, poor sales performance might have dragged down its quarterly earnings.
The Zacks Consensus Estimate for the defense giant’s second-quarter earnings is pegged at $1.74 per share, suggesting a deterioration of 75.6% from the prior-year reported number.
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. This is not the case here.
Lockheed has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Defense Earnings Coming Up
L3Harris Technologies (LHX - Free Report) is scheduled to release its second-quarter results on Jul 28. It holds a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
LHX delivered a four-quarter average earnings surprise of 2.32%. The Zacks Consensus Estimate for L3Harris’ second-quarter earnings, pegged at $3.16, has moved up 0.3% over the past seven days. LHX boasts a long-term earnings growth rate of 4.4%.
Triumph Group (TGI - Free Report) is scheduled to release its fiscal first-quarter results on Aug 2. It holds a Zacks Rank #3.
The Zacks Consensus Estimate for Triumph Group’s fiscal first-quarter earnings, pegged at 8 cents, has improved 33.3% over the past 30 days. TGI boasts a long-term earnings growth rate of 2.6%.
CAE Inc (CAE - Free Report) is expected to release its fiscal first-quarter results soon. It holds a Zacks Rank #3.
The Zacks Consensus Estimate for CAE’s fiscal first-quarter earnings, pegged at 18 cents, has remained unchanged over the past seven days. CAE boasts a long-term earnings growth rate of 16.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.