On Oct. 24, Lockheed Martin (NYSE:LMT) released Q3 earnings for the period ended Sept. 30.

  • Revenues missed analyst estimates, but EPS came out ahead.
  • The IT and space systems segments showed an improved operating profit, while the aeronautics division had a slight decline.
  • Lockheed executed its "balanced" cash deployment strategy by investing in acquisitions, paying down debt, repurchasing shares, and paying $128 million in dividends. Cash on the balance sheet dropped 25%.
  • Free cash flow increased 8.0%.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005

Change

Sales

$9,825

$9,605

$9,201

4.4%

Net Profit

--

$629

$427

47.3%

EPS

$1.24

$1.46

$0.96

52.0%

Diluted Shares

--

432

446

(3.1%)



Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

8.36%

6.69%

1.67

Operating Margin

9.42%

7.67%

1.75

Net Margin

6.55%

4.64%

1.91

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$2,683

$3,566

(24.8%)

Accounts Rec.

$4,865

$4,440

9.6%

Inventory

$2,034

$1,648

23.4%



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$1,933

$1,854

4.3%

Long-Term Debt

$4,403

$4,874

(9.7%)



Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2006

YTD 2005

Change

Cash From Ops.

$3,450

$3,138

9.9%

Capital Expenditures

$453

$362

25.1%

Free Cash Flow

$2,997

$2,776

8.0%



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Related Companies:

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