Lockheed Martin beats earnings expectations for Q3, but misses on revenue

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Lockheed Martin is an American aerospace, defense, security, and advanced technologies company with worldwide interests. Lockheed Martin is one of the world’s largest defense contractors and has been involved in some of the most important military and civilian aircraft programs. The company reported third quarter 2021 results today, with non-GAAP EPS of $6.87 beating expectations by $0.15.

However, revenue of $16.58B missed expectations by $110M. Looking ahead to the full year 2022, Lockheed Martin expects net sales of ~$65.25B, compared to consensus estimates of $65.31B. Diluted EPS is expected to be ~$21.55, compared to consensus estimates of $26.71.

Earnings

Lockheed Martin Intrinsic Value – Lockheed Martin ($NYSE:LMT) released its earning report for the second quarter of its 2022 fiscal year, ending on June 26. The report showed that the company earned a total of 64.2 billion dollars in revenue and 4.7 billion dollars in net income. Compared to the previous year, this represented a decrease of 4.2 percent in total revenue and 25.4 percent in net income.

This is despite the fact that the company has been able to maintain a fairly steady level of net income over that time period. Overall, this earnings report was mixed, with the company beating expectations on earnings but missing on revenue. It remains to be seen how Lockheed Martin will perform in the coming quarters, but the company will no doubt be closely watched by investors.

Price History

On Tuesday, LOCKHEED MARTIN stock opened at $403.2 and closed at $431.8, rise by 8.7% from last closing price of $397.3. The company announced their quarterly earnings report which showed that they had beaten expectations, but missed on revenue. Although the media’s initial reaction to the news was mostly negative, investors seem to be optimistic about the company’s future.

VI Analysis – Lockheed Martin Intrinsic Value

The Lockheed Martin Corporation is an American aerospace, defense, security, and advanced technologies company with worldwide interests.

VI Peers

There is fierce competition in the aerospace and defense industry, with companies constantly striving to develop the most innovative products and services. This is especially true for Lockheed Martin Corp, which is one of the world’s largest defense contractors. Lockheed Martin’s competitors include Northrop Grumman Corp, Ballistic Recovery Systems Inc, and LIG Nex1 Co Ltd. While each company has its own strengths and weaknesses, Lockheed Martin has consistently been able to stay ahead of the competition. This is due in large part to the company’s significant investments in research and development, as well as its strong relationships with the US government.

– Northrop Grumman Corp ($NYSE:NOC)

Northrop Grumman Corp is an American aerospace and defense technology company with a market cap of $78.41B as of 2022. The company has a Return on Equity of 34.54%. Northrop Grumman Corp is involved in the design, development, and manufacture of aircraft, spacecraft, and related systems and products.

– Ballistic Recovery Systems Inc ($OTCPK:BRSI)

Ballistic Recovery Systems, Inc. (BRS) is a designer, manufacturer and marketer of parachutes and related safety systems intended to enable a safe return to earth after an aircraft accident. The company’s products are used in general aviation, commercial aviation, military aviation and space applications. BRS has approximately 4,200 customers in over 100 countries. The company’s products are designed to provide a last resort safety system for aircraft occupants in the event of an in-flight emergency. BRS products are not intended to be used as a primary means of exit from an aircraft. On October 23, 2020, BRS announced the sale of its assets to AmSafe Bridport Limited.

– LIG Nex1 Co Ltd ($KOSE:079550)

LIG Nex1 Co Ltd is a South Korean defense company specializing in electronics and weapons systems. The company has a market cap of 1.87T as of 2022 and a Return on Equity of 14.92%. LIG Nex1 is a leading provider of electronic warfare, radar, and communications systems to the South Korean military, and has also supplied systems to militaries in over 40 countries. The company has over 3,000 employees and reported revenue of $1.6 billion in 2020.

Summary

Lockheed Martin is a large defense contractor that has a history of strong financial performance. The company recently beat earnings expectations for its third quarter, but missed on revenue. Media sentiment towards the company is mostly negative at this time. Despite this, the stock price moved up on the news. Investors may be attracted to Lockheed Martin for its strong financial performance and history of dividend growth. The company also has a large and diversified business portfolio, which provides some level of protection against macroeconomic headwinds.

However, investors should be aware of the potential risks associated with investing in a defense contractor, such as changes in government spending levels.