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Lockheed (LMT) Q4 Earnings Top Estimates, Sales Rise Y/Y
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Lockheed Martin Corporation (LMT - Free Report) reported fourth-quarter 2022 adjusted earnings of $7.79 per share, which surpassed the Zacks Consensus Estimate of $7.41 by 5.1%. The bottom line also improved 7.9% year over year.
The company reported GAAP earnings of $7.40 in the fourth quarter of 2022 compared with $7.47 in the prior-year quarter.
For the full-year 2022, the company reported adjusted earnings of $27.23 per share, which beat the Zacks Consensus Estimate of $21.70 by 25.5%. GAAP earnings for the full-year 2022 came in at $21.66 compared with $22.76 in 2021.
Our model projected adjusted earnings of $7.25 per share for the fourth quarter and $26.88 per share for 2022.
Operational Highlights
In the reported quarter, net sales amounted to $19 billion, which surpassed the Zacks Consensus Estimate of $18.25 billion by 4.1%. The top line rose 7.3% from the $17.7 billion reported in the year-ago quarter.
For the full-year 2022, net sales came in at $66 billion, surpassing the Zacks Consensus Estimate of $65.24 billion by 1.2%. However, net sales declined 1.5% year over year.
Our model projected net sales of $18.26 billion for the fourth quarter and $65.25 billion for 2022.
Lockheed Martin Corporation Price, Consensus and EPS Surprise
Lockheed Martin ended 2022 (on Dec 31, 2022) with $149.99 billion in the backlog compared with $135.36 billion at the end of 2021. Of this, the Aeronautics segment accounted for $56.63 billion, while Rotary and Mission Systems contributed $34.95 billion.
Meanwhile, Space Systems and the Missiles and Fire Control segments contributed $29.68 billion and $28.74 billion, respectively.
Segmental Performance
Aeronautics: Sales improved 7% year over year to $7.64 billion, primarily driven by higher sales from the F-35 program, the C-130 program and classified contracts. The segment’s operating profit decreased 0.5% year over year to $816 million. The operating margin contracted 80 basis points (bps) to 10.7%.
Missiles and Fire Control: Quarterly sales rose 2% year over year to $3.29 billion due to higher sales from tactical and strike missile programs. The segment’s operating profit increased 2.9% year over year to $451 million, while the operating margin expanded 10 bps to 13.7%.
Space Systems: Sales increased 12% year over year to $3.27 billion in the fourth quarter due to higher sales from strategic and missile defense programs, national security space programs and commercial civil space programs. The segment’s operating profit decreased 25% to $231 million. The operating margin contracted 340 bps to 7.1% in the quarter under review.
Rotary and Mission Systems: Quarterly revenues increased 8% on a year-over-year basis to $4.80 billion. The increase was primarily due to higher sales for integrated warfare systems and sensors programs, Sikorsky helicopter programs and the Combat Rescue Helicopter program.
The segment’s operating profit rose 13.4% to $508 million in the fourth quarter. The operating margin expanded 60 bps to 10.6% in the reported quarter.
Financial Condition
Lockheed Martin’s cash and cash equivalents totaled $2.55 billion at the end of 2022 compared with $3.60 billion at the end of 2021. Cash from operating activities at the end of 2022 amounted to $7.80 billion compared with $9.22 billion a year ago.
Guidance
Lockheed Martin initiated its financial guidance for 2023. The company expects 2023 revenues in the range of $65-66 billion. The Zacks Consensus Estimate for full-year revenues, which is pegged at $65.72 billion, is in line with the midpoint of the company’s guided range.
Earnings per share are anticipated in the band of $26.60-$26.90 for 2023. The Zacks Consensus Estimate for the company’s full-year earnings of $27.38 per share is higher than the midpoint of LMT’s guidance range. Also, the company expects its free cash flow guidance to be approximately $6.2 billion for 2023.
Textron Inc. (TXT - Free Report) is scheduled to report fourth-quarter and 2022 results on Jan 25 before market open. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $3.67 billion, suggesting a rise of 10.5% from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for Textron’s fourth-quarter earnings is pegged at $1.01 per share, indicating an improvement of 7.5% from the prior-year reported figure.
The Boeing Company (BA - Free Report) is set to release its fourth-quarter 2022 results on Jan 25 before the opening bell. The Zacks Consensus Estimate for Boeing’s total revenues is pegged at $19.43 billion, suggesting a 31.3% improvement from the prior-year reported number.
The Zacks Consensus Estimate for BA’s bottom line is pegged at earnings of 30 cents per share, indicating a significant improvement from the year-ago quarter’s loss of $7.69.
Airbus Group (EADSY - Free Report) currently has an Earnings ESP of +6.25% and a Zacks Rank #2. Airbus boasts a long-term earnings growth rate of 12.4%. The Zacks Consensus Estimate for EADSY’s fourth-quarter sales is pegged at $60.8 billion.
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Lockheed (LMT) Q4 Earnings Top Estimates, Sales Rise Y/Y
Lockheed Martin Corporation (LMT - Free Report) reported fourth-quarter 2022 adjusted earnings of $7.79 per share, which surpassed the Zacks Consensus Estimate of $7.41 by 5.1%. The bottom line also improved 7.9% year over year.
The company reported GAAP earnings of $7.40 in the fourth quarter of 2022 compared with $7.47 in the prior-year quarter.
For the full-year 2022, the company reported adjusted earnings of $27.23 per share, which beat the Zacks Consensus Estimate of $21.70 by 25.5%. GAAP earnings for the full-year 2022 came in at $21.66 compared with $22.76 in 2021.
Our model projected adjusted earnings of $7.25 per share for the fourth quarter and $26.88 per share for 2022.
Operational Highlights
In the reported quarter, net sales amounted to $19 billion, which surpassed the Zacks Consensus Estimate of $18.25 billion by 4.1%. The top line rose 7.3% from the $17.7 billion reported in the year-ago quarter.
For the full-year 2022, net sales came in at $66 billion, surpassing the Zacks Consensus Estimate of $65.24 billion by 1.2%. However, net sales declined 1.5% year over year.
Our model projected net sales of $18.26 billion for the fourth quarter and $65.25 billion for 2022.
Lockheed Martin Corporation Price, Consensus and EPS Surprise
Lockheed Martin Corporation price-consensus-eps-surprise-chart | Lockheed Martin Corporation Quote
Backlog
Lockheed Martin ended 2022 (on Dec 31, 2022) with $149.99 billion in the backlog compared with $135.36 billion at the end of 2021. Of this, the Aeronautics segment accounted for $56.63 billion, while Rotary and Mission Systems contributed $34.95 billion.
Meanwhile, Space Systems and the Missiles and Fire Control segments contributed $29.68 billion and $28.74 billion, respectively.
Segmental Performance
Aeronautics: Sales improved 7% year over year to $7.64 billion, primarily driven by higher sales from the F-35 program, the C-130 program and classified contracts. The segment’s operating profit decreased 0.5% year over year to $816 million. The operating margin contracted 80 basis points (bps) to 10.7%.
Missiles and Fire Control: Quarterly sales rose 2% year over year to $3.29 billion due to higher sales from tactical and strike missile programs. The segment’s operating profit increased 2.9% year over year to $451 million, while the operating margin expanded 10 bps to 13.7%.
Space Systems: Sales increased 12% year over year to $3.27 billion in the fourth quarter due to higher sales from strategic and missile defense programs, national security space programs and commercial civil space programs. The segment’s operating profit decreased 25% to $231 million. The operating margin contracted 340 bps to 7.1% in the quarter under review.
Rotary and Mission Systems: Quarterly revenues increased 8% on a year-over-year basis to $4.80 billion. The increase was primarily due to higher sales for integrated warfare systems and sensors programs, Sikorsky helicopter programs and the Combat Rescue Helicopter program.
The segment’s operating profit rose 13.4% to $508 million in the fourth quarter. The operating margin expanded 60 bps to 10.6% in the reported quarter.
Financial Condition
Lockheed Martin’s cash and cash equivalents totaled $2.55 billion at the end of 2022 compared with $3.60 billion at the end of 2021. Cash from operating activities at the end of 2022 amounted to $7.80 billion compared with $9.22 billion a year ago.
Guidance
Lockheed Martin initiated its financial guidance for 2023. The company expects 2023 revenues in the range of $65-66 billion. The Zacks Consensus Estimate for full-year revenues, which is pegged at $65.72 billion, is in line with the midpoint of the company’s guided range.
Earnings per share are anticipated in the band of $26.60-$26.90 for 2023. The Zacks Consensus Estimate for the company’s full-year earnings of $27.38 per share is higher than the midpoint of LMT’s guidance range. Also, the company expects its free cash flow guidance to be approximately $6.2 billion for 2023.
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 Q4 Defense Earnings
Textron Inc. (TXT - Free Report) is scheduled to report fourth-quarter and 2022 results on Jan 25 before market open. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $3.67 billion, suggesting a rise of 10.5% from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for Textron’s fourth-quarter earnings is pegged at $1.01 per share, indicating an improvement of 7.5% from the prior-year reported figure.
The Boeing Company (BA - Free Report) is set to release its fourth-quarter 2022 results on Jan 25 before the opening bell. The Zacks Consensus Estimate for Boeing’s total revenues is pegged at $19.43 billion, suggesting a 31.3% improvement from the prior-year reported number.
The Zacks Consensus Estimate for BA’s bottom line is pegged at earnings of 30 cents per share, indicating a significant improvement from the year-ago quarter’s loss of $7.69.
Airbus Group (EADSY - Free Report) currently has an Earnings ESP of +6.25% and a Zacks Rank #2. Airbus boasts a long-term earnings growth rate of 12.4%. The Zacks Consensus Estimate for EADSY’s fourth-quarter sales is pegged at $60.8 billion.