Lockheed Martin's Earnings: A Preview

Lockheed Martin LMT is set to give its latest quarterly earnings report on Tuesday, 2024-10-22. Here's what investors need to know before the announcement.

Analysts estimate that Lockheed Martin will report an earnings per share (EPS) of $6.48.

The announcement from Lockheed Martin is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Historical Earnings Performance

The company's EPS beat by $0.65 in the last quarter, leading to a 2.77% increase in the share price on the following day.

Here's a look at Lockheed Martin's past performance and the resulting price change:

Market Performance of Lockheed Martin's Stock

Shares of Lockheed Martin were trading at $611.81 as of October 18. Over the last 52-week period, shares are up 39.5%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Take on Lockheed Martin

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Lockheed Martin.

Analysts have provided Lockheed Martin with 18 ratings, resulting in a consensus rating of Buy. The average one-year price target stands at $594.0, suggesting a potential 2.91% downside.

Analyzing Ratings Among Peers

The following analysis focuses on the analyst ratings and average 1-year price targets of RTX, General Dynamics and GE Aero, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Neutral trajectory for RTX, with an average 1-year price target of $128.1, indicating a potential 79.06% downside.
• The consensus among analysts is an Outperform trajectory for General Dynamics, with an average 1-year price target of $330.1, indicating a potential 46.05% downside.
• As per analysts' assessments, GE Aero is favoring an Outperform trajectory, with an average 1-year price target of $210.5, suggesting a potential 65.59% downside.

Snapshot: Peer Analysis

The peer analysis summary outlines pivotal metrics for RTX, General Dynamics and GE Aero, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Lockheed Martin ranks highest in Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.

Unveiling the Story Behind Lockheed Martin

Lockheed Martin is the world's largest defense contractor and has dominated the Western market for high-end fighter aircraft since it won the F-35 Joint Strike Fighter program in 2001. Lockheed's largest segment is aeronautics, which derives upward of two-thirds of its revenue from the F-35. Lockheed's remaining segments are rotary and mission systems, mainly encompassing the Sikorsky helicopter business; missiles and fire control, which creates missiles and missile defense systems; and space systems, which produces satellites and receives equity income from the United Launch Alliance joint venture.

Unraveling the Financial Story of Lockheed Martin

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Lockheed Martin's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 8.56%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Lockheed Martin's net margin is impressive, surpassing industry averages. With a net margin of 9.06%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Lockheed Martin's ROE excels beyond industry benchmarks, reaching 25.59%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Lockheed Martin's ROA excels beyond industry benchmarks, reaching 2.98%. This signifies efficient management of assets and strong financial health.

Debt Management: With a high debt-to-equity ratio of 3.12, Lockheed Martin faces challenges in effectively managing its debt levels, indicating potential financial strain.

To track all earnings releases for Lockheed Martin visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.