The 10-second takeaway
For the quarter ended March 25 (Q1), Lockheed Martin beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.
Gross margins contracted, operating margins expanded, and net margins expanded.
Lockheed Martin booked revenue of $11.29 billion. The 16 analysts polled by S&P Capital IQ foresaw revenue of $10.55 billion on the same basis. GAAP reported sales were 6.2% higher than the prior-year quarter's $10.63 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $2.02. The 21 earnings estimates compiled by S&P Capital IQ forecast $1.71 per share on the same basis. GAAP EPS of $2.03 for Q1 were 35% higher than the prior-year quarter's $1.50 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 8.6%, 180 basis points worse than the prior-year quarter. Operating margin was 8.9%, 90 basis points better than the prior-year quarter. Net margin was 5.9%, 90 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $11.33 billion. On the bottom line, the average EPS estimate is $1.96.
Next year's average estimate for revenue is $45.69 billion. The average EPS estimate is $7.86.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,752 members out of 1,868 rating the stock outperform, and 116 members rating it underperform. Among 471 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 451 give Lockheed Martin a green thumbs-up, and 20 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lockheed Martin is hold, with an average price target of $84.12.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Lockheed Martin. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.