Lockheed Martin Expects 'Topline Growth' After Q4 Earnings Marginally Surpass Estimates

Lockheed Martin Corp LMT enjoyed slightly improved earnings in the fourth quarter, with 2023 sales hovering around $18.87 billion, compared to $18.99 billion a year ago. The company beat the consensus of $17.97 billion, according to data from Benzinga Pro.

EPS in the fourth quarter was $7.58, up from $7.40 per share last year, versus the consensus of $ $7.28, while net earnings fell slightly to $1.87 billion from $1.91 billion.

Cash from operations was $2.4 billion in the fourth quarter compared to $1.9 billion a year ago, while free cash flow was $1.7 billion, up from $1.2 billion the year prior. 

“Our solid finish to 2023 and full-year results reflect continued strong demand for our all-domain portfolio of advanced defense tech solutions,” said chair, president, and CEO Jim Taiclet. 

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“Looking ahead to 2024… we anticipate continued top-line growth in 2024 and sustained cash flow conversion and deployment, in support of our mid-single digit growth target in free cash flow per share.” 

Aeronautics’ net sales in the fourth quarter of 2023 sales remained at $7.6 billion. The company says fourth-quarter net sales on the F-35 program decreased $275 million due to lower volume on production contracts partially offset by higher volume on development and sustainment contracts.

Rotary and Mission Systems’ fourth quarter of 2023 decreased by 2% to $4.7 billion due to lower sales of integrated warfare systems and sensors.

Space’s net sales in the fourth quarter improved by 3% to $3.4 billion.

Guidance: Lockheed Martin sees fiscal year 2024 net sales $68.5 billion-$70 billion versus the consensus of $68.65 billion.

The Bethesda, Maryland-based company expects fiscal year 2024 diluted EPS of $25.65-$26.35 compared to the consensus of $26.62.

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Price Action: LMT shares are down 0.89% at $454.65 on the last check Tuesday.