On Jan. 25, defense giant Lockheed Martin (NYSE:LMT) released fourth-quarter earnings for the period ended Dec. 31, 2006.
- The company's fourth-quarter net sales went up by 6% to $10.8 billion, with increasing revenues across all segments.
- Operating profit increased across each sector, helping to drive the bottom line. The 32% increase in operating profit from the aeronautics segment led the company to increase operating-profit estimates for 2007.
- With the formation of the United Launch Alliance joint venture, net sales for 2007 will be reduced by an estimated $800 million.
- Lockheed Martin is a three-star stock in Motley Fool CAPS, our interactive stock-rating database.
(Figures millions, except per-share data)
Income Statement Highlights
|
Q4 2006 |
Q4 2005 |
Change | |
|---|---|---|---|
|
Sales |
$10,840.0 |
$10,229.0 |
6.0% |
|
Net Profit |
$729.0 |
$568.0 |
28.3% |
|
EPS |
$1.68 |
$1.29 |
30.2% |
|
Diluted Shares |
432.8 |
439.0 |
(1.4%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
9.5% |
7.1% |
2.4 |
|
Operating Margin |
10.5% |
8.7% |
1.8 |
|
Net Margin |
6.7% |
5.6% |
1.1 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$2,293 |
$2,673 |
(14.2%) |
|
Accounts Rec. |
$4,601 |
$4,579 |
0.5% |
|
Inventory |
$1,663 |
$1,921 |
(13.4%) |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$2,196 |
$1,998 |
9.9% |
|
Long-Term Debt |
$4,405 |
$4,784 |
(7.9%) |
Learn the ways of the balance sheet.
Cash Flow Highlights|
FY 2006 |
FY 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$3,783 |
$3,194 |
18.4% |
|
Capital Expenditures |
$893 |
$865 |
3.2% |
|
Free Cash Flow |
$2,890 |
$2,329 |
24.1% |
Find out why Fools always follow the money.
Related Companies:
- Northrop Grumman (NYSE:NOC)
- Boeing (NYSE:BA)
- Raytheon (NYSE:RTN)
- Honeywell (NYSE:HON)
- L-3 (NYSE:LLL)
Related Foolishness:
- Foolish Forecast: Locking In on Lockheed
- Lockheed Locks In Q3: Fool by Numbers
- Defense Contractors Under Attack?
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
