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Lockheed's (LMT) Q1 Earnings Top Estimates, Sales Rise Y/Y
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Lockheed Martin Corporation (LMT - Free Report) reported first-quarter 2023 adjusted earnings of $6.43 per share, which surpassed the Zacks Consensus Estimate of $6.07 by 5.9%. The bottom line, however, was in line with the year-ago quarter's figure.
The company reported GAAP earnings of $6.61 per share in the first quarter of 2023 compared with $6.44 in the prior-year quarter.
Our model projected adjusted earnings of $6.15 per share for the same time frame.
Lockheed Martin Corporation Price, Consensus and EPS Surprise
Net sales amounted to $15.13 billion in the reported quarter, which surpassed the Zacks Consensus Estimate of $14.87 billion by 1.9%. The top line rose 1.1% from $14.96 billion in the year-ago quarter.
Our model projected net sales of $14.84 billion for the first quarter of 2023.
Backlog
Lockheed Martin's backlog as of Mar 26, 2023, was $145.09 billion compared with $150 billion at the end of 2022. The Aeronautics segment accounted for $53.30 billion of this amount, while Rotary and Mission Systems contributed $34.91 billion.
The Space Systems, and the Missiles and Fire Control segments contributed $29.44 billion and $27.45 billion, respectively.
Segmental Performance
Aeronautics: Sales declined 2% year over year to $6.27 billion primarily due to lower volume on production contracts for the F-35 program.
The segment’s operating profit decreased 1% year over year to $675 million. The operating margin expanded 20 basis points (bps) to 10.8%.
Missiles and Fire Control: Quarterly sales dropped 3% year over year to $2.39 billion. This was due to lower sales from the sensors and global sustainment programs, as well as marginal sales of $60 million from the tactical and strike missile programs.
The segment’s operating profit decreased 2% year over year to $377 million, while the operating margin expanded 10 bps to 15.8%.
Space Systems: Sales increased 16% year over year to $2.96 billion due to higher sales from strategic and missile defense programs, national security space programs, and commercial civil space programs.
The segment’s operating profit improved 13% to $280 million. The operating margin contracted 20 bps to 9.5% in the quarter under review.
Rotary and Mission Systems: Quarterly revenues dropped 1% to $3.51 billion on a year-over-year basis. The decrease was primarily due to lower sales from Sikorsky helicopter program, as well as various C6ISR (command, control, communications, computers, cyber, combat systems, intelligence, surveillance and reconnaissance) programs.
The segment’s operating profit declined 14% to $350 million in the reported quarter. The operating margin contracted 140 bps to 10% in the same time frame.
Financial Condition
Lockheed Martin’s cash and cash equivalents totaled $2.44 billion at the end of first-quarter 2023 compared with $2.55 billion at the end of 2022. Cash from operating activities amounted to $1.56 billion compared with $1.41 billion in the year-ago period.
Guidance
Lockheed Martin reiterated its financial guidance for 2023. The company expects revenues of $65-66 billion for 2023. The Zacks Consensus Estimate for full-year revenues is pegged at $65.71 billion, which is slightly lower than the mid-point of the company’s guided range.
LMT’s earnings per share are anticipated to be $26.60-$26.90 for 2023. The Zacks Consensus Estimate for the company’s full-year earnings of $26.86 per share is higher than the mid-point of the company’s guidance range.
Lockheed Martin expects a free cash flow of $6.2 billion for 2023.
Textron Inc. (TXT - Free Report) is scheduled to report first-quarter 2023 results on Apr 27, before market open. The Zacks Consensus Estimate for first-quarter revenues is pegged at $3.10 billion, indicating a 3.5% increase from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for Textron’s earnings is pegged at 95 cents per share, indicating an 8% improvement from the prior-year period's reported figure.
The Boeing Company (BA - Free Report) is set to release first-quarter 2023 results on Apr 26, before the opening bell. The Zacks Consensus Estimate for Boeing’s total revenues is pegged at $17.67 billion, indicating a 26.3% increase from the year-ago reported number.
The bottom-line estimate for BA is pegged at a loss of 81 cents per share, indicating a significant improvement from the year-ago quarter’s reported loss of $2.75 per share.
Northrop Grumman (NOC - Free Report) is set to release first-quarter 2023 results on Apr 27, before the opening bell. The Zacks Consensus Estimate for Northrop’s total revenues is pegged at $9.20 billion, indicating a 4.6% improvement from the prior-year reported number.
The Zacks Consensus Estimate for NOC’s first-quarter earnings is pegged at $5.20 per share, indicating a 14.8% decline from the year-ago period.
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Lockheed's (LMT) Q1 Earnings Top Estimates, Sales Rise Y/Y
Lockheed Martin Corporation (LMT - Free Report) reported first-quarter 2023 adjusted earnings of $6.43 per share, which surpassed the Zacks Consensus Estimate of $6.07 by 5.9%. The bottom line, however, was in line with the year-ago quarter's figure.
The company reported GAAP earnings of $6.61 per share in the first quarter of 2023 compared with $6.44 in the prior-year quarter.
Our model projected adjusted earnings of $6.15 per share for the same time frame.
Lockheed Martin Corporation Price, Consensus and EPS Surprise
Lockheed Martin Corporation price-consensus-eps-surprise-chart | Lockheed Martin Corporation Quote
Operational Highlights
Net sales amounted to $15.13 billion in the reported quarter, which surpassed the Zacks Consensus Estimate of $14.87 billion by 1.9%. The top line rose 1.1% from $14.96 billion in the year-ago quarter.
Our model projected net sales of $14.84 billion for the first quarter of 2023.
Backlog
Lockheed Martin's backlog as of Mar 26, 2023, was $145.09 billion compared with $150 billion at the end of 2022. The Aeronautics segment accounted for $53.30 billion of this amount, while Rotary and Mission Systems contributed $34.91 billion.
The Space Systems, and the Missiles and Fire Control segments contributed $29.44 billion and $27.45 billion, respectively.
Segmental Performance
Aeronautics: Sales declined 2% year over year to $6.27 billion primarily due to lower volume on production contracts for the F-35 program.
The segment’s operating profit decreased 1% year over year to $675 million. The operating margin expanded 20 basis points (bps) to 10.8%.
Missiles and Fire Control: Quarterly sales dropped 3% year over year to $2.39 billion. This was due to lower sales from the sensors and global sustainment programs, as well as marginal sales of $60 million from the tactical and strike missile programs.
The segment’s operating profit decreased 2% year over year to $377 million, while the operating margin expanded 10 bps to 15.8%.
Space Systems: Sales increased 16% year over year to $2.96 billion due to higher sales from strategic and missile defense programs, national security space programs, and commercial civil space programs.
The segment’s operating profit improved 13% to $280 million. The operating margin contracted 20 bps to 9.5% in the quarter under review.
Rotary and Mission Systems: Quarterly revenues dropped 1% to $3.51 billion on a year-over-year basis. The decrease was primarily due to lower sales from Sikorsky helicopter program, as well as various C6ISR (command, control, communications, computers, cyber, combat systems, intelligence, surveillance and reconnaissance) programs.
The segment’s operating profit declined 14% to $350 million in the reported quarter. The operating margin contracted 140 bps to 10% in the same time frame.
Financial Condition
Lockheed Martin’s cash and cash equivalents totaled $2.44 billion at the end of first-quarter 2023 compared with $2.55 billion at the end of 2022. Cash from operating activities amounted to $1.56 billion compared with $1.41 billion in the year-ago period.
Guidance
Lockheed Martin reiterated its financial guidance for 2023. The company expects revenues of $65-66 billion for 2023. The Zacks Consensus Estimate for full-year revenues is pegged at $65.71 billion, which is slightly lower than the mid-point of the company’s guided range.
LMT’s earnings per share are anticipated to be $26.60-$26.90 for 2023. The Zacks Consensus Estimate for the company’s full-year earnings of $26.86 per share is higher than the mid-point of the company’s guidance range.
Lockheed Martin expects a free cash flow of $6.2 billion for 2023.
Zacks Rank
Lockheed Martin currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Q1 Defense Earnings
Textron Inc. (TXT - Free Report) is scheduled to report first-quarter 2023 results on Apr 27, before market open. The Zacks Consensus Estimate for first-quarter revenues is pegged at $3.10 billion, indicating a 3.5% increase from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for Textron’s earnings is pegged at 95 cents per share, indicating an 8% improvement from the prior-year period's reported figure.
The Boeing Company (BA - Free Report) is set to release first-quarter 2023 results on Apr 26, before the opening bell. The Zacks Consensus Estimate for Boeing’s total revenues is pegged at $17.67 billion, indicating a 26.3% increase from the year-ago reported number.
The bottom-line estimate for BA is pegged at a loss of 81 cents per share, indicating a significant improvement from the year-ago quarter’s reported loss of $2.75 per share.
Northrop Grumman (NOC - Free Report) is set to release first-quarter 2023 results on Apr 27, before the opening bell. The Zacks Consensus Estimate for Northrop’s total revenues is pegged at $9.20 billion, indicating a 4.6% improvement from the prior-year reported number.
The Zacks Consensus Estimate for NOC’s first-quarter earnings is pegged at $5.20 per share, indicating a 14.8% decline from the year-ago period.