We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Q3 Earnings Put Lockheed Martin Heavy ETFs in Focus
Read MoreHide Full Article
Lockheed Martin (LMT - Free Report) reported better-than-anticipated third-quarter fiscal 2023 results on Oct 17, 2023. Both earnings and revenues beat the respective Zacks Consensus Estimate.
Shares of LMT have gained about 1.58% after reporting its earnings as of Oct 18. Increasing geopolitical tensions prove to be a key tailwind for the company. LMT currently has a Zacks Momentum Score of A, indicating that the stock of the company will maintain its current trajectory.
Earnings in Focus
The U.S. weapon maker reported adjusted earnings of $6.77 per share, surpassing the Zacks Consensus Estimate of $6.66 by 1.7% in the third quarter of 2023. However, the bottom line decreased by 1.5% from the year-ago quarter.
The company reported GAAP earnings of $6.73 per share compared with $6.71 in the prior-year period.
Lockheed Martin exceeded expectations with net sales of $16.88 billion, beating the Zacks Consensus Estimate of $16.66 billion by 1.3%. The 1.8% year-over-year increase from $16.58 billion also showed robust growth.
Geopolitical Tensions to Give a Boost
The escalating Middle East crisis, especially the conflict between Israel and Gaza, has resulted in a surge in defense stocks driven by increased demand for military equipment. The share price of Lockheed Martin has surged about 11.32% (as of Oct 18) since the conflict in the Middle East started. Additionally, increasing tensions could lead to a rise in defense expenditures by the United States and its European counterparts, benefiting defense stocks (See: Defense Stocks & ETFs Soar Amid Rising Geopolitical Tensions).
Guidance
The world's largest defense contractor has reiterated its financial guidance for 2023. The company now expects revenues of $66.25-$66.75 billion. The Zacks Consensus Estimate for full-year revenues is pegged at $66.64 billion, higher than the mid-point of the company’s guided range.
LMT now expects 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 the mid-point of the company’s guided range.
ETFs in Focus
Investors looking to invest in the weapon maker can look into the following ETFs, with considerable exposure in the company.
iShares U.S. Aerospace & Defense ETF (ITA - Free Report)
iShares U.S. Aerospace & Defense ETF seeks to track the performance of Dow Jones U.S. Select Aerospace & Defense Index with a basket of 33 securities. The fund has amassed an asset base of $5.02 billion and charges an annual fee of 0.40%.
iShares U.S. Aerospace & Defense ETF has an exposure of 8.15% in LMT and a Zacks ETF Rank #2 (Buy), along with a Medium risk outlook. The fund has earned 15.83% over the past year and 0.07% over the past month (as of Oct 19).
First Trust Indxx Aerospace & Defense ETF seeks to closely track the performance of the Indxx US Aerospace & Defense Index. The fund has a basket of 32 securities and has gathered an asset base of $49.07 million. MISL charges an annual fee of 0.60%.
First Trust Indxx Aerospace & Defense ETF has an exposure of 7.86% in LMT and a Zacks ETF Rank #3 (Hold). The fund has returned 3.04% year to date and 2.83% over the past month (as of Oct 19).
Global X Defense Tech ETF seeks to track the performance of the Global X Defense Tech Index with a basket of 34 holdings. The fund has amassed an asset base of $3.35 million and charges an annual fee of 0.50%.
Global X Defense Tech ETF has an exposure of 7.54% in LMT. The fund has gained 4.19% over the past month (as of Oct 19).
Invesco Aerospace & Defense ETF is based on the SPADE Defense Index. The fund has a basket of 54 securities and an asset base of $2.06 billion. PPA charges an annual fee of 0.58%.
Invesco Aerospace & Defense ETF has an exposure of 6.54% in LMT and a Zacks ETF Rank #3 (Hold), along with a Medium risk outlook. The fund has earned 22.66% over the past year and 1.76% over the past month (as of Oct 19).
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Q3 Earnings Put Lockheed Martin Heavy ETFs in Focus
Lockheed Martin (LMT - Free Report) reported better-than-anticipated third-quarter fiscal 2023 results on Oct 17, 2023. Both earnings and revenues beat the respective Zacks Consensus Estimate.
Shares of LMT have gained about 1.58% after reporting its earnings as of Oct 18. Increasing geopolitical tensions prove to be a key tailwind for the company. LMT currently has a Zacks Momentum Score of A, indicating that the stock of the company will maintain its current trajectory.
Earnings in Focus
The U.S. weapon maker reported adjusted earnings of $6.77 per share, surpassing the Zacks Consensus Estimate of $6.66 by 1.7% in the third quarter of 2023. However, the bottom line decreased by 1.5% from the year-ago quarter.
The company reported GAAP earnings of $6.73 per share compared with $6.71 in the prior-year period.
Lockheed Martin exceeded expectations with net sales of $16.88 billion, beating the Zacks Consensus Estimate of $16.66 billion by 1.3%. The 1.8% year-over-year increase from $16.58 billion also showed robust growth.
Geopolitical Tensions to Give a Boost
The escalating Middle East crisis, especially the conflict between Israel and Gaza, has resulted in a surge in defense stocks driven by increased demand for military equipment. The share price of Lockheed Martin has surged about 11.32% (as of Oct 18) since the conflict in the Middle East started. Additionally, increasing tensions could lead to a rise in defense expenditures by the United States and its European counterparts, benefiting defense stocks (See: Defense Stocks & ETFs Soar Amid Rising Geopolitical Tensions).
Guidance
The world's largest defense contractor has reiterated its financial guidance for 2023. The company now expects revenues of $66.25-$66.75 billion. The Zacks Consensus Estimate for full-year revenues is pegged at $66.64 billion, higher than the mid-point of the company’s guided range.
LMT now expects 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 the mid-point of the company’s guided range.
ETFs in Focus
Investors looking to invest in the weapon maker can look into the following ETFs, with considerable exposure in the company.
iShares U.S. Aerospace & Defense ETF (ITA - Free Report)
iShares U.S. Aerospace & Defense ETF seeks to track the performance of Dow Jones U.S. Select Aerospace & Defense Index with a basket of 33 securities. The fund has amassed an asset base of $5.02 billion and charges an annual fee of 0.40%.
iShares U.S. Aerospace & Defense ETF has an exposure of 8.15% in LMT and a Zacks ETF Rank #2 (Buy), along with a Medium risk outlook. The fund has earned 15.83% over the past year and 0.07% over the past month (as of Oct 19).
First Trust Indxx Aerospace & Defense ETF (MISL - Free Report)
First Trust Indxx Aerospace & Defense ETF seeks to closely track the performance of the Indxx US Aerospace & Defense Index. The fund has a basket of 32 securities and has gathered an asset base of $49.07 million. MISL charges an annual fee of 0.60%.
First Trust Indxx Aerospace & Defense ETF has an exposure of 7.86% in LMT and a Zacks ETF Rank #3 (Hold). The fund has returned 3.04% year to date and 2.83% over the past month (as of Oct 19).
Global X Defense Tech ETF (SHLD - Free Report)
Global X Defense Tech ETF seeks to track the performance of the Global X Defense Tech Index with a basket of 34 holdings. The fund has amassed an asset base of $3.35 million and charges an annual fee of 0.50%.
Global X Defense Tech ETF has an exposure of 7.54% in LMT. The fund has gained 4.19% over the past month (as of Oct 19).
Invesco Aerospace & Defense ETF (PPA - Free Report)
Invesco Aerospace & Defense ETF is based on the SPADE Defense Index. The fund has a basket of 54 securities and an asset base of $2.06 billion. PPA charges an annual fee of 0.58%.
Invesco Aerospace & Defense ETF has an exposure of 6.54% in LMT and a Zacks ETF Rank #3 (Hold), along with a Medium risk outlook. The fund has earned 22.66% over the past year and 1.76% over the past month (as of Oct 19).