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Lockheed Martin Corporation (LMT - Free Report) reported fourth-quarter 2023 adjusted earnings of $7.90 per share, which beat the Zacks Consensus Estimate of $7.26 by 8.8%. The bottom line also improved 1.4% from the year-ago quarter's recorded figure.
The company reported GAAP earnings of $7.58 per share compared with $7.40 in the prior-year period.
Lockheed reported 2023 adjusted earnings of $27.82 per share, which beat the Zacks Consensus Estimate of $27.24 by 2.1%. The bottom line also rose 2.2% from the year-ago quarter's recorded figure.
Operational Highlights
Net sales were $18.87 billion in the reported quarter, which surpassed the Zacks Consensus Estimate of $17.98 billion by 4.9%. The top line, however, decreased 0.6% from $18.99 billion reported in the year-ago quarter.
Net sales were $67.57 billion in 2023, which beat the Zacks Consensus Estimate of $66.68 billion by 1.3%. The top line also rose 2.4% from $65.98 billion reported in the year-ago quarter.
Backlog
Lockheed’s backlog as of Dec 31, 2023, was $160.57 billion compared with $156.03 billion at the end of third-quarter 2023.
Our model projected a backlog worth $169.08 billion for the fourth quarter of 2023.
The Aeronautics segment accounted for $60.16 billion of this amount, while Rotary and Mission Systems contributed $37.73 billion. The Missiles and Fire Control, and the Space Systems segments contributed $32.23 billion and $30.46 billion, respectively.
Segmental Performance
Aeronautics: Sales decreased 0.3% year over year to $7.61 billion on account of lower sales from the F-35 program due to lower volume from production contracts.
The segment’s operating profit deteriorated 6.7% year over year to $761 million. The operating margin also contracted 70 basis points (bps) to 10%.
Missiles and Fire Control: Quarterly sales dropped 3.5% year over year to $3.17 billion. This was on account of lower net sales from integrated air and missile defense programs, primarily due to supplier cost timing on PAC-3 missiles.
The segment’s operating profit decreased 12.4% year over year to $395 million, while the operating margin of 12.5% deteriorated 120 bps from the year-ago quarter’s level.
Space Systems: Sales increased 3.5% year over year to $3.38 billion due to higher sales from strategic and missile defense programs, driven by a ramp-up in the Next Generation Interceptor (NGI) development program.
The segment’s operating profit improved 31.2% to $307 million. The operating margin expanded 190 bps to 9.2% in the quarter under review.
Rotary and Mission Systems: Quarterly revenues declined 2% to $4.71 billion on a year-over-year basis. This was primarily driven by lower sales from integrated warfare systems and sensors programs as well as from training and logistics solutions programs.
The segment’s operating profit rose 2% to $579 million in the reported quarter. The operating margin expanded 50 bps to 12.3% in the same time frame.
Financial Condition
Lockheed’s cash and cash equivalents totaled $1.44 billion at the end of 2023 compared with $2.55 billion at the end of 2022.
Cash from operating activities amounted to $7.92 billion during 2023 compared with $7.80 billion in the year-ago period.
Long-term debt as of Dec 31, 2023, totaled $17.29 billion, up from $15.43 billion as of Dec 31, 2022.
2024 Guidance
Lockheed has provided its financial guidance for 2024. The company expects revenues in the range of $68.50-$70.00 billion. The Zacks Consensus Estimate for revenues is pegged at $68.59 billion, which lies lower than the mid-point of the company’s guided range.
LMT expects to generate earnings per share (EPS) in the range of $25.65-$26.35. The Zacks Consensus Estimate for the company’s full-year EPS is pinned at $26.70, higher than the company’s guided range.
Lockheed expects to generate free cash flow in the range of $6.00-$6.30 billion during 2024.
Textron (TXT - Free Report) is scheduled to declare fourth-quarter 2023 results on Jan 24, before market open. The Zacks Consensus Estimate for revenues is pegged at $3.92 billion, indicating a 7.8% increase from the year-ago quarter’s reported figure.
The consensus mark for Textron’s earnings is pinned at $1.53 per share, indicating a 43% year-over-year improvement.
The Boeing Company (BA - Free Report) is set to release fourth-quarter 2023 results on Jan 31, before the opening bell. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $21.23 billion, indicating a 6.2% year-over-year increase.
The bottom-line estimate for BA is pegged at a loss of 72 cents per share, indicating a significant improvement from the year-ago quarter’s reported loss of $1.75.
Northrop Grumman (NOC - Free Report) is scheduled to report fourth-quarter 2023 results on Jan 25, before market open. The Zacks Consensus Estimate for revenues is pegged at $10.44 billion, indicating a 4% increase from the year-ago quarter’s reported figure.
The consensus mark for Northrop’s earnings is pinned at $5.75 per share, indicating a 23.3% year-over-year decline.
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Lockheed (LMT) Q4 Earnings Beat Estimates, Sales Decline Y/Y
Lockheed Martin Corporation (LMT - Free Report) reported fourth-quarter 2023 adjusted earnings of $7.90 per share, which beat the Zacks Consensus Estimate of $7.26 by 8.8%. The bottom line also improved 1.4% from the year-ago quarter's recorded figure.
The company reported GAAP earnings of $7.58 per share compared with $7.40 in the prior-year period.
Lockheed reported 2023 adjusted earnings of $27.82 per share, which beat the Zacks Consensus Estimate of $27.24 by 2.1%. The bottom line also rose 2.2% from the year-ago quarter's recorded figure.
Operational Highlights
Net sales were $18.87 billion in the reported quarter, which surpassed the Zacks Consensus Estimate of $17.98 billion by 4.9%. The top line, however, decreased 0.6% from $18.99 billion reported in the year-ago quarter.
Net sales were $67.57 billion in 2023, which beat the Zacks Consensus Estimate of $66.68 billion by 1.3%. The top line also rose 2.4% from $65.98 billion reported in the year-ago quarter.
Backlog
Lockheed’s backlog as of Dec 31, 2023, was $160.57 billion compared with $156.03 billion at the end of third-quarter 2023.
Our model projected a backlog worth $169.08 billion for the fourth quarter of 2023.
The Aeronautics segment accounted for $60.16 billion of this amount, while Rotary and Mission Systems contributed $37.73 billion. The Missiles and Fire Control, and the Space Systems segments contributed $32.23 billion and $30.46 billion, respectively.
Segmental Performance
Aeronautics: Sales decreased 0.3% year over year to $7.61 billion on account of lower sales from the F-35 program due to lower volume from production contracts.
The segment’s operating profit deteriorated 6.7% year over year to $761 million. The operating margin also contracted 70 basis points (bps) to 10%.
Missiles and Fire Control: Quarterly sales dropped 3.5% year over year to $3.17 billion. This was on account of lower net sales from integrated air and missile defense programs, primarily due to supplier cost timing on PAC-3 missiles.
The segment’s operating profit decreased 12.4% year over year to $395 million, while the operating margin of 12.5% deteriorated 120 bps from the year-ago quarter’s level.
Space Systems: Sales increased 3.5% year over year to $3.38 billion due to higher sales from strategic and missile defense programs, driven by a ramp-up in the Next Generation Interceptor (NGI) development program.
The segment’s operating profit improved 31.2% to $307 million. The operating margin expanded 190 bps to 9.2% in the quarter under review.
Rotary and Mission Systems: Quarterly revenues declined 2% to $4.71 billion on a year-over-year basis. This was primarily driven by lower sales from integrated warfare systems and sensors programs as well as from training and logistics solutions programs.
The segment’s operating profit rose 2% to $579 million in the reported quarter. The operating margin expanded 50 bps to 12.3% in the same time frame.
Financial Condition
Lockheed’s cash and cash equivalents totaled $1.44 billion at the end of 2023 compared with $2.55 billion at the end of 2022.
Cash from operating activities amounted to $7.92 billion during 2023 compared with $7.80 billion in the year-ago period.
Long-term debt as of Dec 31, 2023, totaled $17.29 billion, up from $15.43 billion as of Dec 31, 2022.
2024 Guidance
Lockheed has provided its financial guidance for 2024. The company expects revenues in the range of $68.50-$70.00 billion. The Zacks Consensus Estimate for revenues is pegged at $68.59 billion, which lies lower than the mid-point of the company’s guided range.
LMT expects to generate earnings per share (EPS) in the range of $25.65-$26.35. The Zacks Consensus Estimate for the company’s full-year EPS is pinned at $26.70, higher than the company’s guided range.
Lockheed expects to generate free cash flow in the range of $6.00-$6.30 billion during 2024.
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 Q4 Defense Earnings
Textron (TXT - Free Report) is scheduled to declare fourth-quarter 2023 results on Jan 24, before market open. The Zacks Consensus Estimate for revenues is pegged at $3.92 billion, indicating a 7.8% increase from the year-ago quarter’s reported figure.
The consensus mark for Textron’s earnings is pinned at $1.53 per share, indicating a 43% year-over-year improvement.
The Boeing Company (BA - Free Report) is set to release fourth-quarter 2023 results on Jan 31, before the opening bell. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $21.23 billion, indicating a 6.2% year-over-year increase.
The bottom-line estimate for BA is pegged at a loss of 72 cents per share, indicating a significant improvement from the year-ago quarter’s reported loss of $1.75.
Northrop Grumman (NOC - Free Report) is scheduled to report fourth-quarter 2023 results on Jan 25, before market open. The Zacks Consensus Estimate for revenues is pegged at $10.44 billion, indicating a 4% increase from the year-ago quarter’s reported figure.
The consensus mark for Northrop’s earnings is pinned at $5.75 per share, indicating a 23.3% year-over-year decline.