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Lockheed Martin (LMT) Q2 Earnings Top Estimates, EPS View Down
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Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2022 earnings of $6.32 per share, which surpassed the Zacks Consensus Estimate of $6.29 by 0.5%. The bottom line however declined 1.6% year over year.
Operational Highlights
In the reported quarter, net sales amounted to $15.45 billion, which missed the Zacks Consensus Estimate of $16.16 billion by 4.4%. The top line also declined 9.3% from $17.03 billion reported in the year-ago quarter.
Lockheed Martin Corporation Price, Consensus and EPS Surprise
Lockheed Martin ended the second quarter of 2022 (on Jun 26, 2022) with $134.64 billion in backlog compared with $135.23 billion at the end of first-quarter 2022. Of this, the Aeronautics segment accounted for $43.82 billion, while Rotary and Mission Systems contributed $35.10 billion. Meanwhile, Space Systems and the Missiles and Fire Control segments contributed $26.55 billion and $29.17 billion, respectively.
Segmental Performance
Aeronautics: Sales declined 12% year over year to $5.86 billion, primarily due to lower net sales from the F-35 and F-16 programs.
The segment’s operating profit improved 7% year over year to $612 million. The operating margin expanded 180 basis points (bps) to 10.4%.
Missiles and Fire Control: Quarterly sales declined 7% year over year to $2.75 billion due to lower sales at tactical and strike missile programs as well as sensors and global sustainment programs.
The segment’s operating profit improved 4% year over year to $418 million, while the operating margin expanded 160 bps to 15.2%.
Space Systems: Sales decreased 11% year over year to $2.83 billion in the second 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 resulted in the poor sales performance of the segment.
The segment’s operating profit declined 20% to $268 million. The operating margin contracted 100 bps to 9.5% in the quarter under review.
Rotary and Mission Systems: Quarterly revenues declined 5% on a year-over-year basis to $4.01 billion. The decrease was primarily due to lower sales for integrated warfare systems and sensors (IWSS) programs, various C6ISR programs and Sikorsky helicopter programs.
The segment’s operating profit dropped 12% to $403 million in the second quarter. The operating margin contracted 80 bps to 10% in the reported quarter.
Financial Condition
Lockheed Martin’s cash and cash equivalents totaled $1.78 billion at the end of second-quarter 2022 compared with $3.60 billion at the end of 2021.
Cash from operations at the end of second-quarter 2022 amounted to $2.74 billion compared with $3.02 billion a year ago.
Guidance
Lockheed Martin updated its financial guidance for 2022.
The company currently expects 2022 revenues to be $65.25 billion, lower than the prior guidance of approximately $66 billion. The Zacks Consensus Estimate for full-year revenues, which is pegged at $65.96 billion, is slightly higher than the company’s guidance.
Earnings per share are now anticipated to be $21.55 for 2022, lower than the prior guidance of $26.70. The Zacks Consensus Estimate for the company’s full-year earnings, which stands at $22.31 per share, lies above LMT’s guidance.
However, the company has maintained its free cash flow guidance at $6 billion for 2022.
L3Harris Technologies (LHX - Free Report) is scheduled to release its second-quarter results on Jul 28. It holds a Zacks Rank #3.
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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Lockheed Martin (LMT) Q2 Earnings Top Estimates, EPS View Down
Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2022 earnings of $6.32 per share, which surpassed the Zacks Consensus Estimate of $6.29 by 0.5%. The bottom line however declined 1.6% year over year.
Operational Highlights
In the reported quarter, net sales amounted to $15.45 billion, which missed the Zacks Consensus Estimate of $16.16 billion by 4.4%. The top line also declined 9.3% from $17.03 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 second quarter of 2022 (on Jun 26, 2022) with $134.64 billion in backlog compared with $135.23 billion at the end of first-quarter 2022. Of this, the Aeronautics segment accounted for $43.82 billion, while Rotary and Mission Systems contributed $35.10 billion. Meanwhile, Space Systems and the Missiles and Fire Control segments contributed $26.55 billion and $29.17 billion, respectively.
Segmental Performance
Aeronautics: Sales declined 12% year over year to $5.86 billion, primarily due to lower net sales from the F-35 and F-16 programs.
The segment’s operating profit improved 7% year over year to $612 million. The operating margin expanded 180 basis points (bps) to 10.4%.
Missiles and Fire Control: Quarterly sales declined 7% year over year to $2.75 billion due to lower sales at tactical and strike missile programs as well as sensors and global sustainment programs.
The segment’s operating profit improved 4% year over year to $418 million, while the operating margin expanded 160 bps to 15.2%.
Space Systems: Sales decreased 11% year over year to $2.83 billion in the second 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 resulted in the poor sales performance of the segment.
The segment’s operating profit declined 20% to $268 million. The operating margin contracted 100 bps to 9.5% in the quarter under review.
Rotary and Mission Systems: Quarterly revenues declined 5% on a year-over-year basis to $4.01 billion. The decrease was primarily due to lower sales for integrated warfare systems and sensors (IWSS) programs, various C6ISR programs and Sikorsky helicopter programs.
The segment’s operating profit dropped 12% to $403 million in the second quarter. The operating margin contracted 80 bps to 10% in the reported quarter.
Financial Condition
Lockheed Martin’s cash and cash equivalents totaled $1.78 billion at the end of second-quarter 2022 compared with $3.60 billion at the end of 2021.
Cash from operations at the end of second-quarter 2022 amounted to $2.74 billion compared with $3.02 billion a year ago.
Guidance
Lockheed Martin updated its financial guidance for 2022.
The company currently expects 2022 revenues to be $65.25 billion, lower than the prior guidance of approximately $66 billion. The Zacks Consensus Estimate for full-year revenues, which is pegged at $65.96 billion, is slightly higher than the company’s guidance.
Earnings per share are now anticipated to be $21.55 for 2022, lower than the prior guidance of $26.70. The Zacks Consensus Estimate for the company’s full-year earnings, which stands at $22.31 per share, lies above LMT’s guidance.
However, the company has maintained its free cash flow guidance at $6 billion for 2022.
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 Q2 Defense Releases
L3Harris Technologies (LHX - Free Report) is scheduled to release its second-quarter results on Jul 28. It holds a Zacks Rank #3.
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%.