What Investors Should Expect from Lockheed Martin's Earnings
Lockheed Martin's Upcoming Earnings Report
Lockheed Martin (NYSE:LMT) is set to unveil its quarterly earnings report soon. This overview serves as a guide for investors to understand what to anticipate ahead of this important financial announcement.
Projected Earnings Performance
Analysts are forecasting that Lockheed Martin will report an earnings per share (EPS) of $6.34 for the upcoming quarter. Investors are eager to see if the company will exceed these expectations, fueling optimism for future guidance and performance.
Assessing Previous Earnings
In the last quarter, Lockheed Martin's performance surpassed expectations with an EPS of $7.29, exceeding the estimate by $0.75. This positive surprise resulted in a notable increase in the stock price by 2.11% on the following trading day.
Historical Performance Overview
To help investors put recent performance into context, here's a brief recap of Lockheed Martin's earnings history:
| Quarter | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 |
|---|---|---|---|---|
| EPS Estimate | 6.54 | 6.34 | 6.61 | 6.50 |
| EPS Actual | 7.29 | 7.28 | 7.67 | 6.84 |
| Price Change % | 2.00 | 0.00 | -1.00 | -1.00 |
Current Stock Overview
As of mid-October, shares of Lockheed Martin are trading at $495.15, marking a decline of 13.43% over the last year. This drop raises concerns among long-term investors, who may be feeling bearish about the company's performance as the earnings release approaches.
Analyst Insights and Market Sentiment
The market sentiment surrounding Lockheed Martin is essential for investors. Currently, there are 13 analyst ratings, with a consensus rating of Neutral. The average one-year price target stands at $506.00, highlighting a potential upside of 2.19% from the current price.
Competitor Performance Insights
Understanding how Lockheed Martin stacks up against key competitors can provide additional clarity. A comparative evaluation with General Dynamics, Northrop Grumman, and Howmet Aerospace reveals:
- General Dynamics is favored with an Outperform consensus, featuring a one-year price target of $356.33, which indicates a potential 28.04% downside.
- Northrop Grumman is currently rated Buy, with a target of $642.00, hinting at a potential upside of 29.66%.
- Howmet Aerospace also has a rating of Outperform, marked by a price target of $206.40, signaling a potential downside of 58.32%.
Peer Comparison Summary
This summary highlights crucial metrics within the industry:
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Lockheed Martin | Neutral | 0.18% | $734M | 5.69% |
| General Dynamics | Outperform | 8.89% | $1.95B | 4.43% |
| Northrop Grumman | Buy | 1.30% | $2.21B | 7.71% |
| Howmet Aerospace | Outperform | 9.20% | $619M | 8.37% |
Understanding Lockheed Martin's Business Model
Lockheed Martin stands as the largest defense contractor globally, with a commanding position in high-end fighter aircraft manufacturing, notably through the F-35 program. The Aeronautics segment generates over two-thirds of its revenue from the F-35 alone. Additionally, their portfolio encompasses rotary and mission systems, missile and defense systems, alongside space systems.
Financial Performance Overview
Market Capitalization: Lockheed Martin's market capitalization is impressively high compared to its competitors, underscoring its strong market presence.
Revenue Performance: For the quarter ending June 30, recent data reveal a revenue growth rate of 0.18%. Despite this growth, it's noteworthy that their performance is currently trailing behind sector averages.
Profit Margins: The company reports a net margin of 1.88%, which is below standard industry benchmarks, prompting discussions on cost control strategies.
Return on Equity (ROE): Lockheed Martin excels with a ROE of 5.69%, demonstrating effective capital utilization compared to industry averages.
Asset Efficiency: The return on assets (ROA) sits at 0.59%, which indicates potential inefficiencies in asset utilization.
Debt Ratio: A debt-to-equity ratio of 4.06 highlights the company's exposure to financial risks, suggesting that prudent debt management is crucial moving forward.
Frequently Asked Questions
What is Lockheed Martin's projected EPS for the upcoming quarter?
Analysts expect Lockheed Martin to report an EPS of $6.34 for the next quarter.
How did Lockheed Martin perform in the last quarter?
In the last quarter, Lockheed Martin's actual EPS was $7.29, exceeding the estimate by $0.75.
What are the key competitors of Lockheed Martin?
Lockheed Martin's key competitors include General Dynamics, Northrop Grumman, and Howmet Aerospace.
What is the current stock price of Lockheed Martin?
As of mid-October, Lockheed Martin shares are trading at $495.15.
What is Lockheed Martin's position in the defense industry?
Lockheed Martin is the world's largest defense contractor, leading in high-end fighter aircraft production.
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