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Lockheed (LMT) Beats on Q2 Earnings, Ups '23 Sales View
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Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2023 adjusted earnings of $6.73 per share, which surpassed the Zacks Consensus Estimate of $6.43 by 4.7%. The bottom line also improved 6.5% from the year-ago quarter's figure.
The company reported GAAP earnings of $6.63 per share compared with $1.16 in the prior-year period.
Operational Highlights
Net sales amounted to $16.69 billion in the reported quarter, which surpassed the Zacks Consensus Estimate of $15.86 billion by 5.3%. The top line rose 8.1% from $15.45 billion in the year-ago quarter.
Lockheed Martin Corporation Price, Consensus and EPS Surprise
Lockheed’s backlog as of Jun 25, 2023, was $158.01 billion compared with $145.09 billion at the end of first-quarter 2023.
Our model projected backlog worth $145.84 billion in the second quarter of 2023.
The Aeronautics segment accounted for $58.10 billion of this amount, while Rotary and Mission Systems contributed $35.95 billion. The Missiles and Fire Control, and the Space Systems segments contributed $34.02 billion and $29.95 billion, respectively.
Segmental Performance
Aeronautics: Sales improved 17.3% year over year to $6.88 billion, primarily driven by higher volume of production contracts for F-35 jets as well as higher volume of sustainment contracts for C-130 program. Higher net sales from classified programs also added to this unit’s quarterly sales growth.
The segment’s operating profit rose 17% year over year to $718 million. The operating margin, however, contracted 10 basis points (bps) to 10.4%.
Missiles and Fire Control: Quarterly sales inched up 0.4% year over year to $2.76 billion. This was driven by higher net sales from tactical and strike missile programs amid lower sales from integrated air and missile defense programs.
The segment’s operating profit decreased 11% year over year to $371 million, while the operating margin contracted 170 bps to 13.5%.
Space Systems: Sales increased 12.1% year over year to $3.17 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 15% to $312 million. The operating margin expanded 30 bps to 9.9% in the quarter under review.
Rotary and Mission Systems: Quarterly revenues decreased 3% to $3.90 billion on a year-over-year basis. This was primarily due to lower sales from Sikorsky helicopter program on account of lower production volume for Black Hawk helicopters.
The segment’s operating profit declined 2% to $454 million in the reported quarter. The operating margin expanded 10 bps to 11.6% in the same time frame.
Financial Condition
Lockheed’s cash and cash equivalents totaled $3.67 billion at the end of second-quarter 2023 compared with $2.55 billion at the end of 2022.
Cash from operating activities amounted to $2.66 billion during the first six months of 2023 compared with $2.77 billion in the year-ago period.
Long-term debt as of Jun 30, 2023, totaled $17.26 billion, up from $15.43 billion as of Dec 31, 2022.
2023 Guidance
Lockheed has partly raised its financial guidance for 2023. The company now expects revenues of $66.25-$66.75 billion compared with its earlier projection of $65-66 billion. The Zacks Consensus Estimate for full-year revenues is pegged at $65.77 billion, which lies lower than the company’s guided range.
LMT now expects earnings per share (EPS) in the range of $27.00-$27.20, up from the prior guidance of $26.60-$26.90. The Zacks Consensus Estimate for the company’s full-year EPS is pinned at $27.06, lower than the mid-point of the company’s guided range.
Lockheed, however, still expects to generate free cash flow of $6.2 billion during 2023.
Textron (TXT - Free Report) is scheduled to report second-quarter 2023 results on Jul 27, before market open. The Zacks Consensus Estimate for revenues is pegged at $3.40 billion, indicating a 7.8% increase from the year-ago quarter’s reported figure.
The consensus mark for Textron’s earnings is pegged at $1.20 per share, indicating a 20% improvement from the prior-year period's recorded number.
The Boeing Company (BA - Free Report) is set to release second-quarter 2023 results on Jul 26, before the opening bell. The Zacks Consensus Estimate for total revenues is pegged at $17.99 billion, indicating a 7.8% increase from the year-ago quarter’s reported figure.
The bottom-line estimate for BA is pegged at a loss of 94 cents, indicating a significant deterioration from the year-ago quarter’s reported loss of 37 cents.
Northrop Grumman (NOC - Free Report) is set to release second-quarter 2023 results on Jul 27, before the opening bell. The Zacks Consensus Estimate for total revenues is pegged at $9.32 billion, indicating a 5.9% improvement from the prior-year period’s recorded number.
The Zacks Consensus Estimate for NOC’s earnings is pinned at $5.31 per share, indicating a 12.4% decline from that recorded in the year-ago quarter.
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Lockheed (LMT) Beats on Q2 Earnings, Ups '23 Sales View
Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2023 adjusted earnings of $6.73 per share, which surpassed the Zacks Consensus Estimate of $6.43 by 4.7%. The bottom line also improved 6.5% from the year-ago quarter's figure.
The company reported GAAP earnings of $6.63 per share compared with $1.16 in the prior-year period.
Operational Highlights
Net sales amounted to $16.69 billion in the reported quarter, which surpassed the Zacks Consensus Estimate of $15.86 billion by 5.3%. The top line rose 8.1% from $15.45 billion 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’s backlog as of Jun 25, 2023, was $158.01 billion compared with $145.09 billion at the end of first-quarter 2023.
Our model projected backlog worth $145.84 billion in the second quarter of 2023.
The Aeronautics segment accounted for $58.10 billion of this amount, while Rotary and Mission Systems contributed $35.95 billion. The Missiles and Fire Control, and the Space Systems segments contributed $34.02 billion and $29.95 billion, respectively.
Segmental Performance
Aeronautics: Sales improved 17.3% year over year to $6.88 billion, primarily driven by higher volume of production contracts for F-35 jets as well as higher volume of sustainment contracts for C-130 program. Higher net sales from classified programs also added to this unit’s quarterly sales growth.
The segment’s operating profit rose 17% year over year to $718 million. The operating margin, however, contracted 10 basis points (bps) to 10.4%.
Missiles and Fire Control: Quarterly sales inched up 0.4% year over year to $2.76 billion. This was driven by higher net sales from tactical and strike missile programs amid lower sales from integrated air and missile defense programs.
The segment’s operating profit decreased 11% year over year to $371 million, while the operating margin contracted 170 bps to 13.5%.
Space Systems: Sales increased 12.1% year over year to $3.17 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 15% to $312 million. The operating margin expanded 30 bps to 9.9% in the quarter under review.
Rotary and Mission Systems: Quarterly revenues decreased 3% to $3.90 billion on a year-over-year basis. This was primarily due to lower sales from Sikorsky helicopter program on account of lower production volume for Black Hawk helicopters.
The segment’s operating profit declined 2% to $454 million in the reported quarter. The operating margin expanded 10 bps to 11.6% in the same time frame.
Financial Condition
Lockheed’s cash and cash equivalents totaled $3.67 billion at the end of second-quarter 2023 compared with $2.55 billion at the end of 2022.
Cash from operating activities amounted to $2.66 billion during the first six months of 2023 compared with $2.77 billion in the year-ago period.
Long-term debt as of Jun 30, 2023, totaled $17.26 billion, up from $15.43 billion as of Dec 31, 2022.
2023 Guidance
Lockheed has partly raised its financial guidance for 2023. The company now expects revenues of $66.25-$66.75 billion compared with its earlier projection of $65-66 billion. The Zacks Consensus Estimate for full-year revenues is pegged at $65.77 billion, which lies lower than the company’s guided range.
LMT now expects earnings per share (EPS) in the range of $27.00-$27.20, up from the prior guidance of $26.60-$26.90. The Zacks Consensus Estimate for the company’s full-year EPS is pinned at $27.06, lower than the mid-point of the company’s guided range.
Lockheed, however, still expects to generate free cash flow of $6.2 billion during 2023.
Zacks Rank
Lockheed currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Q2 Defense Earnings
Textron (TXT - Free Report) is scheduled to report second-quarter 2023 results on Jul 27, before market open. The Zacks Consensus Estimate for revenues is pegged at $3.40 billion, indicating a 7.8% increase from the year-ago quarter’s reported figure.
The consensus mark for Textron’s earnings is pegged at $1.20 per share, indicating a 20% improvement from the prior-year period's recorded number.
The Boeing Company (BA - Free Report) is set to release second-quarter 2023 results on Jul 26, before the opening bell. The Zacks Consensus Estimate for total revenues is pegged at $17.99 billion, indicating a 7.8% increase from the year-ago quarter’s reported figure.
The bottom-line estimate for BA is pegged at a loss of 94 cents, indicating a significant deterioration from the year-ago quarter’s reported loss of 37 cents.
Northrop Grumman (NOC - Free Report) is set to release second-quarter 2023 results on Jul 27, before the opening bell. The Zacks Consensus Estimate for total revenues is pegged at $9.32 billion, indicating a 5.9% improvement from the prior-year period’s recorded number.
The Zacks Consensus Estimate for NOC’s earnings is pinned at $5.31 per share, indicating a 12.4% decline from that recorded in the year-ago quarter.