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Will Solid Segment Sales Aid Lockheed (LMT) in Q3 Earnings?
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Lockheed Martin Corporation (LMT - Free Report) is slated to release third-quarter 2022 results on Oct 18, before the opening bell.
Higher sales volume from the majority of the company’s segments is expected to have boosted LMT’s top-line performance in the soon-to-be-reported quarter. However, supply chain disruption might have had some impact on overall the bottom-line performance.
Let's see how things have shaped up prior to this announcement.
Aeronautics to Post Impressive Sales
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 impressive performance in the soon-to-be-reported quarter.
Lockheed Martin Corporation Price and EPS Surprise
Strength in the classified business area as well as higher F-35 deliveries are expected to have boosted the performance of the Aeronautics segment in the quarter. However, the supply chain might have had some impacts on this unit’s overall Q3 performance.
The Zacks Consensus Estimate for this unit’s revenues for the third quarter stands at $6,997 million, indicating a 6.5% rise 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. Higher volume from tactical and strike missiles must have boosted the sales performance of this unit in the soon-to-be-reported quarter.
However, lower sustainment revenues for special operations, following the troop withdrawal, from Afghanistan might have had some adverse impact on the Q3 performance of the MFC unit.
The Zacks Consensus Estimate for MFC segment revenues is currently pegged at $2,844 million, implying a 2.3% increase from the year-ago reported figure.
In its Rotary and Mission Systems (RMS) segment, solid helicopter volume must have boosted this division’s Q3 performance.
The Zacks Consensus Estimate for the RMS segment’s third-quarter revenues is currently pegged at $4,118 million, implying a 3.5% improvement from the year-ago reported figure.
Q3 Expectations
Considering the aforementioned developments, the sales improvement expected in three major segments of Lockheed Martin may have benefited the company’s overall sales performance in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for the company’s third-quarter revenues stands at $16.79 billion, indicating a 4.7% increase from the year-earlier reported figure.
While such impressive sales performance is expected to aid LMT’s Q3 results, factors like a one-time pension settlement charge, the impacts of the year-to-date mark-to-market adjustments along with costs related to the Lots 15 through 17 production contract might have had an adverse impact on its bottom line.
The Zacks Consensus Estimate for the defense giant’s third-quarter earnings is pegged at $6.60 per share, suggesting a slip of 0.9% from the prior-year reported number.
What the Zacks Model Unveils
Our proven model predicts 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.
Lockheed has an Earnings ESP of +1.41% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few defense companies that you may want to consider as these also have the right combination of elements to post an earnings beat this season:
The Zacks Consensus Estimate for SPR’s third-quarter earnings, pegged at a loss of 39 cents, has remained the same over the past seven days. The stock boasts a long-term earnings growth rate of 8.5%.
TransDigm Group (TDG - Free Report) is going to release its third-quarter results soon. It holds a Zacks Rank #3 and has an Earnings ESP of +6.84%.
The Zacks Consensus Estimate for TransDigm’s earnings, pegged at $5.05, has improved 1% over the past 30 days. TDG boasts a long-term earnings growth rate of 18.9%.
Another Defense Earnings Coming Up
Spire (SPIR - Free Report) is expected to release its third-quarter results on Nov 9. It holds a Zacks Rank #2.
The Zacks Consensus Estimate for SPIR’s third-quarter earnings, pegged at a loss of 10 cents, has remained unchanged over the past seven days. SPIR boasts a long-term earnings growth rate of 7.9%.
Image: Bigstock
Will Solid Segment Sales Aid Lockheed (LMT) in Q3 Earnings?
Lockheed Martin Corporation (LMT - Free Report) is slated to release third-quarter 2022 results on Oct 18, before the opening bell.
Higher sales volume from the majority of the company’s segments is expected to have boosted LMT’s top-line performance in the soon-to-be-reported quarter. However, supply chain disruption might have had some impact on overall the bottom-line performance.
Let's see how things have shaped up prior to this announcement.
Aeronautics to Post Impressive Sales
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 impressive 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
Strength in the classified business area as well as higher F-35 deliveries are expected to have boosted the performance of the Aeronautics segment in the quarter. However, the supply chain might have had some impacts on this unit’s overall Q3 performance.
The Zacks Consensus Estimate for this unit’s revenues for the third quarter stands at $6,997 million, indicating a 6.5% rise 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. Higher volume from tactical and strike missiles must have boosted the sales performance of this unit in the soon-to-be-reported quarter.
However, lower sustainment revenues for special operations, following the troop withdrawal, from Afghanistan might have had some adverse impact on the Q3 performance of the MFC unit.
The Zacks Consensus Estimate for MFC segment revenues is currently pegged at $2,844 million, implying a 2.3% increase from the year-ago reported figure.
In its Rotary and Mission Systems (RMS) segment, solid helicopter volume must have boosted this division’s Q3 performance.
The Zacks Consensus Estimate for the RMS segment’s third-quarter revenues is currently pegged at $4,118 million, implying a 3.5% improvement from the year-ago reported figure.
Q3 Expectations
Considering the aforementioned developments, the sales improvement expected in three major segments of Lockheed Martin may have benefited the company’s overall sales performance in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for the company’s third-quarter revenues stands at $16.79 billion, indicating a 4.7% increase from the year-earlier reported figure.
While such impressive sales performance is expected to aid LMT’s Q3 results, factors like a one-time pension settlement charge, the impacts of the year-to-date mark-to-market adjustments along with costs related to the Lots 15 through 17 production contract might have had an adverse impact on its bottom line.
The Zacks Consensus Estimate for the defense giant’s third-quarter earnings is pegged at $6.60 per share, suggesting a slip of 0.9% from the prior-year reported number.
What the Zacks Model Unveils
Our proven model predicts 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.
Lockheed has an Earnings ESP of +1.41% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few defense companies that you may want to consider as these also have the right combination of elements to post an earnings beat this season:
Spirit AeroSystems (SPR - Free Report) is scheduled to release its third-quarter results on Nov 3 and has an Earnings ESP of +39.48%. It holds a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for SPR’s third-quarter earnings, pegged at a loss of 39 cents, has remained the same over the past seven days. The stock boasts a long-term earnings growth rate of 8.5%.
TransDigm Group (TDG - Free Report) is going to release its third-quarter results soon. It holds a Zacks Rank #3 and has an Earnings ESP of +6.84%.
The Zacks Consensus Estimate for TransDigm’s earnings, pegged at $5.05, has improved 1% over the past 30 days. TDG boasts a long-term earnings growth rate of 18.9%.
Another Defense Earnings Coming Up
Spire (SPIR - Free Report) is expected to release its third-quarter results on Nov 9. It holds a Zacks Rank #2.
The Zacks Consensus Estimate for SPIR’s third-quarter earnings, pegged at a loss of 10 cents, has remained unchanged over the past seven days. SPIR boasts a long-term earnings growth rate of 7.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.