Lockheed Martin's Earnings: A Preview

Lockheed Martin LMT is gearing up to announce its quarterly earnings on Tuesday, 2024-10-22. Here's a quick overview of what investors should know before the release.

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

Investors in Lockheed Martin are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Historical Earnings Performance

In the previous earnings release, the company beat EPS by $0.65, leading to a 2.77% increase in the share price the following trading session.

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

Tracking Lockheed Martin's Stock Performance

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 should be satisfied going into this earnings release.

Analyst Opinions on Lockheed Martin

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into 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.

Comparing Ratings Among Industry Peers

The below comparison of the analyst ratings and average 1-year price targets of RTX, General Dynamics and GE Aero, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• The consensus among 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.

Comprehensive Peer Analysis Summary

Within the peer analysis summary, vital metrics for RTX, General Dynamics and GE Aero are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Lockheed Martin ranks first in revenue growth among its peers. It also leads in gross profit margin. However, it falls behind in return on equity compared to its peers.

Discovering Lockheed Martin: A Closer Look

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 Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Positive Revenue Trend: Examining Lockheed Martin's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 8.56% as of 30 June, 2024, showcasing a substantial increase in 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 excels beyond industry benchmarks, reaching 9.06%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Lockheed Martin's ROE stands out, surpassing industry averages. With an impressive ROE of 25.59%, the company demonstrates effective use of equity capital and strong financial performance.

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: Lockheed Martin's debt-to-equity ratio surpasses industry norms, standing at 3.12. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

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.