LOCKHEED MARTIN Reports 6.8% Decrease in Revenue, 7.1% Increase in Net Income for Fourth Quarter of FY2022
January 31, 2023
Earnings report
LOCKHEED MARTIN ($NYSE:LMT) is a global aerospace, defense, security, and advanced technologies company. It is headquartered in Bethesda, Maryland and is the world’s largest defense contractor. The company designs, manufactures, and supports a wide range of products and services for military, civil and commercial customers around the globe. On January 24, 2023, LOCKHEED MARTIN reported their earnings results for the fourth quarter of FY2022, which ended on December 31, 2022. The total revenue was USD 1.9 billion, a 6.8% decrease year over year. Despite this decrease in revenue, the company reported a 7.1% increase in its net income, amounting to USD 19.0 billion.
This increase in net income was attributed to higher sales of missiles and other weapons systems. This increase was mainly due to cost savings and productivity improvements in the company’s areas of operation. Overall, the fourth quarter of FY2022 was a positive one for LOCKHEED MARTIN, as the company reported a 7.1% increase in net income despite a 6.8% decrease in revenue. This demonstrates the efficacy of the company’s cost saving and productivity improvements initiatives as well as its ability to adjust to changing market conditions.
Share Price
Despite this, the company’s stock opened at $442.2 and closed at $449.2, up by 1.8% from its prior closing price of 441.3. Additionally, the company’s government services business had lower sales due to the winding down of some programs. This, combined with the increase in stock price, indicates that the company is continuing to perform well and is likely to remain a strong performer for the foreseeable future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Lockheed Martin. More…
| Total Revenues | Net Income | Net Margin |
| 65.98k | 5.73k | 8.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lockheed Martin. More…
| Operations | Investing | Financing |
| 7.8k | -1.79k | -7.07k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Lockheed Martin. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 52.88k | 43.61k | 45.66 |
Key Ratios Snapshot
Some of the financial key ratios for Lockheed Martin are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.3% | -0.1% | 11.1% |
| FCF Margin | ROE | ROA |
| 9.3% | 43.0% | 8.6% |
VI Analysis
Investing in a company requires an understanding of its fundamentals and long term potential. To simplify this process, the VI app provides assessments of companies on a variety of different criteria. According to our VI Risk Rating, LOCKHEED MARTIN is a medium risk investment in terms of financial and business aspects. The app has detected two risk warnings in their income sheet and balance sheet, which can be investigated further with a simple registration. As with any investment decision, it is important to assess the risks and rewards associated with the company. LOCKHEED MARTIN is a reputable company with a good track record, however, it is essential to examine their financials and business performance before investing. Factors such as cash flow, earnings, expenses, and financial health must all be taken into account when making an informed decision. It is also important to consider the company’s competitive environment, as well as its potential for growth. Analyzing LOCKHEED MARTIN’s competitive landscape may provide insights into their long-term potential. Finally, it is important to remember that any investment carries with it some degree of risk. Even with a medium risk rating from the VI app, investors should conduct further research to ensure that any potential investment is in line with their financial goals. More…
VI Peers
The U.S. Department of Defense (DoD) spends billions of dollars on weapons systems each year. Major weapons systems contractors compete for these funds. The competition among these companies is fierce. The companies must not only offer the best products, but they must also be able to demonstrate to the DoD that their products are superior to those of their competitors.
Lockheed Martin Corp is one of the largest weapons systems contractors in the United States. The company’s main competitors are Northrop Grumman Corp, Ballistic Recovery Systems Inc, and LIG Nex1 Co Ltd.
– 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 a leading provider of aircraft, logistics, and technology solutions for the U.S. military, government, and commercial customers. The company’s products and services include aircraft, space systems, missiles, electronics, and technical services.
– Ballistic Recovery Systems Inc ($OTCPK:BRSI)
Ballistic Recovery Systems Inc is a world leader in the design, manufacture, and deployment of parachutes and other soft goods for the aerospace industry. The company has a market cap of 4.19M as of 2022 and a ROE of -159.06%. Ballistic Recovery Systems Inc is a publicly traded company on the Nasdaq Stock Market under the ticker symbol BRS.
– LIG Nex1 Co Ltd ($KOSE:079550)
LIG Nex1 Co Ltd is a South Korean defense company specializing in electronics and weaponry. It was founded in 1999 and is headquartered in Seoul. The company has a market cap of 1.87T as of 2022 and a Return on Equity of 14.92%. LIG Nex1 Co Ltd develops, manufactures, and supplies electronics and weapons products for the military, law enforcement, and commercial markets worldwide. The company’s products include radar systems, sonar systems, electronic warfare systems, communication systems, navigation systems, and missile systems.
Summary
LOCKHEED MARTIN’s fourth quarter of FY2022 earnings report, released on January 24, 2023, showed that the company’s total revenue had decreased by 6.8% year over year, to USD 1.9 billion.
However, net income increased by 7.1% year over year, to USD 19.0 billion. This report implies that investors should consider investing in LOCKHEED MARTIN. The company is able to generate a healthy profit despite declining revenue, which suggests that it is well-managed and has a strong competitive advantage. Furthermore, the 7.1% increase in net income year over year indicates that the company is continuing to grow and generate value for investors. Overall, LOCKHEED MARTIN appears to be a solid investment opportunity. The company is able to generate a healthy profit despite declining revenue, while also growing its net income year over year. This report shows that LOCKHEED MARTIN is a well-managed company with a strong competitive advantage, making it an attractive option for investors.
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