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Lockheed Martin Corporation (LMT - Free Report) reported third-quarter 2023 adjusted earnings of $6.77 per share, which beat the Zacks Consensus Estimate of $6.66 by 1.7%. The bottom line, however, deteriorated 1.5% from the year-ago quarter's recorded figure.
The company reported GAAP earnings of $6.73 per share compared with $6.71 in the prior-year period.
Operational Highlights
Net sales were $16.88 billion in the reported quarter, which surpassed the Zacks Consensus Estimate of $16.66 billion by 1.3%. The top line rose 1.8% from $16.58 billion reported in the year-ago quarter.
Lockheed Martin Corporation Price, Consensus and EPS Surprise
Lockheed’s backlog as of Sep 24, 2023, was $156.03 billion compared with $158.01 billion at the end of second-quarter 2023.
Our model projected a backlog worth $154.88 billion in the third quarter of 2023.
The Aeronautics segment accounted for $55.27 billion of this amount, while Rotary and Mission Systems contributed $37.59 billion. The Missiles and Fire Control, and the Space Systems segments contributed $33.06 billion and $30.12 billion, respectively.
Segmental Performance
Aeronautics: Sales declined 5% year over year to $6.72 billion on account of lower sales from the F-35 program due to lower volume from production contracts.
The segment’s operating profit deteriorated 12% year over year to $671 million. The operating margin also contracted 70 basis points (bps) to 10%.
Missiles and Fire Control: Quarterly sales rose 4% year over year to $2.94 billion. This was driven by higher net sales from tactical and strike missile programs.
The segment’s operating profit increased 4% year over year to $398 million, while the operating margin of 13.5% came in line with the year-ago quarter’s tally.
Space Systems: Sales increased 8% year over year to $3.10 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 deteriorated 15% to $259 million. The operating margin contracted 210 bps to 8.4% in the quarter under review.
Rotary and Mission Systems: Quarterly revenues improved 9% to $4.12 billion on a year-over-year basis. This was primarily driven by higher sales from integrated warfare systems and sensors programs as well as from C6ISR (command, control, communications, computers, cyber, combat systems, intelligence, surveillance, and reconnaissance) programs.
The segment’s operating profit rose 2% to $482 million in the reported quarter. The operating margin, however, contracted 80 bps to 11.7% in the same time frame.
Financial Condition
Lockheed’s cash and cash equivalents totaled $3.55 billion at the end of third-quarter 2023 compared with $2.55 billion at the end of 2022.
Cash from operating activities amounted to $5.56 billion during the first nine months of 2023 compared with $5.87 billion in the year-ago period.
Long-term debt as of Sep 24, 2023, totaled $17.19 billion, up from $15.89 billion as of Dec 31, 2022.
2023 Guidance
Lockheed has reiterated its financial guidance for 2023. The company continues to expect revenues in the range of $66.25-$66.75 billion. The Zacks Consensus Estimate for full-year revenues is pegged at $66.64 billion, which lies higher than the mid-point of the company’s guided range.
LMT still expects to generate earnings per share (EPS) in the range of $27.00-$27.20. The Zacks Consensus Estimate for the company’s full-year EPS is pinned at $27.15, higher than the mid-point of the company’s guided range.
Lockheed still expects to generate free cash flow of more than or equal to $6.2 billion during 2023.
Textron (TXT - Free Report) is scheduled to report third-quarter 2023 results on Oct 26, before market open. The Zacks Consensus Estimate for revenues is pegged at $3.45 billion, indicating a 12.1% increase from the year-ago quarter’s reported figure.
The consensus mark for Textron’s earnings is pinned at $1.26 per share, indicating an 18.9% improvement from the prior-year period's recorded number.
The Boeing Company (BA - Free Report) is set to release third-quarter 2023 results on Oct 25, before the opening bell. The Zacks Consensus Estimate for total revenues is pegged at $18.48 billion, indicating a 15.8% increase from the year-ago quarter’s reported figure.
The bottom-line estimate for BA is pegged at a loss of $2.73, indicating a significant improvement from the year-ago quarter’s reported loss of $6.18.
Northrop Grumman (NOC - Free Report) is set to release third-quarter 2023 results on Oct 26, before the opening bell. The Zacks Consensus Estimate for total revenues is pegged at $9.68 billion, indicating a 7.9% improvement from the prior-year period’s recorded number.
The Zacks Consensus Estimate for NOC’s earnings is pinned at $5.75 per share, indicating a 2.4% year-over-year decline.
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Lockheed (LMT) Q3 Earnings Beat Estimates, Sales Rise Y/Y
Lockheed Martin Corporation (LMT - Free Report) reported third-quarter 2023 adjusted earnings of $6.77 per share, which beat the Zacks Consensus Estimate of $6.66 by 1.7%. The bottom line, however, deteriorated 1.5% from the year-ago quarter's recorded figure.
The company reported GAAP earnings of $6.73 per share compared with $6.71 in the prior-year period.
Operational Highlights
Net sales were $16.88 billion in the reported quarter, which surpassed the Zacks Consensus Estimate of $16.66 billion by 1.3%. The top line rose 1.8% from $16.58 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’s backlog as of Sep 24, 2023, was $156.03 billion compared with $158.01 billion at the end of second-quarter 2023.
Our model projected a backlog worth $154.88 billion in the third quarter of 2023.
The Aeronautics segment accounted for $55.27 billion of this amount, while Rotary and Mission Systems contributed $37.59 billion. The Missiles and Fire Control, and the Space Systems segments contributed $33.06 billion and $30.12 billion, respectively.
Segmental Performance
Aeronautics: Sales declined 5% year over year to $6.72 billion on account of lower sales from the F-35 program due to lower volume from production contracts.
The segment’s operating profit deteriorated 12% year over year to $671 million. The operating margin also contracted 70 basis points (bps) to 10%.
Missiles and Fire Control: Quarterly sales rose 4% year over year to $2.94 billion. This was driven by higher net sales from tactical and strike missile programs.
The segment’s operating profit increased 4% year over year to $398 million, while the operating margin of 13.5% came in line with the year-ago quarter’s tally.
Space Systems: Sales increased 8% year over year to $3.10 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 deteriorated 15% to $259 million. The operating margin contracted 210 bps to 8.4% in the quarter under review.
Rotary and Mission Systems: Quarterly revenues improved 9% to $4.12 billion on a year-over-year basis. This was primarily driven by higher sales from integrated warfare systems and sensors programs as well as from C6ISR (command, control, communications, computers, cyber, combat systems, intelligence, surveillance, and reconnaissance) programs.
The segment’s operating profit rose 2% to $482 million in the reported quarter. The operating margin, however, contracted 80 bps to 11.7% in the same time frame.
Financial Condition
Lockheed’s cash and cash equivalents totaled $3.55 billion at the end of third-quarter 2023 compared with $2.55 billion at the end of 2022.
Cash from operating activities amounted to $5.56 billion during the first nine months of 2023 compared with $5.87 billion in the year-ago period.
Long-term debt as of Sep 24, 2023, totaled $17.19 billion, up from $15.89 billion as of Dec 31, 2022.
2023 Guidance
Lockheed has reiterated its financial guidance for 2023. The company continues to expect revenues in the range of $66.25-$66.75 billion. The Zacks Consensus Estimate for full-year revenues is pegged at $66.64 billion, which lies higher than the mid-point of the company’s guided range.
LMT still expects to generate earnings per share (EPS) in the range of $27.00-$27.20. The Zacks Consensus Estimate for the company’s full-year EPS is pinned at $27.15, higher than the mid-point of the company’s guided range.
Lockheed still expects to generate free cash flow of more than or equal to $6.2 billion during 2023.
Zacks Rank
LMT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Q3 Defense Earnings
Textron (TXT - Free Report) is scheduled to report third-quarter 2023 results on Oct 26, before market open. The Zacks Consensus Estimate for revenues is pegged at $3.45 billion, indicating a 12.1% increase from the year-ago quarter’s reported figure.
The consensus mark for Textron’s earnings is pinned at $1.26 per share, indicating an 18.9% improvement from the prior-year period's recorded number.
The Boeing Company (BA - Free Report) is set to release third-quarter 2023 results on Oct 25, before the opening bell. The Zacks Consensus Estimate for total revenues is pegged at $18.48 billion, indicating a 15.8% increase from the year-ago quarter’s reported figure.
The bottom-line estimate for BA is pegged at a loss of $2.73, indicating a significant improvement from the year-ago quarter’s reported loss of $6.18.
Northrop Grumman (NOC - Free Report) is set to release third-quarter 2023 results on Oct 26, before the opening bell. The Zacks Consensus Estimate for total revenues is pegged at $9.68 billion, indicating a 7.9% improvement from the prior-year period’s recorded number.
The Zacks Consensus Estimate for NOC’s earnings is pinned at $5.75 per share, indicating a 2.4% year-over-year decline.