The 10-second takeaway
For the quarter ended June 24 (Q2), Lockheed Martin beat expectations on revenue and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share grew.
Margins improved across the board.
Lockheed Martin logged revenue of $11.92 billion. The 19 analysts polled by S&P Capital IQ anticipated revenue of $11.29 billion on the same basis. GAAP reported sales were 3.3% higher than the prior-year quarter's $11.54 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $2.38. The 21 earnings estimates compiled by S&P Capital IQ forecast $1.91 per share. GAAP EPS of $2.38 for Q2 were 11% higher than the prior-year quarter's $2.14 per share. (The prior-year quarter included -$0.02 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 12.2%, 130 basis points better than the prior-year quarter. Operating margin was 9.5%, 10 basis points better than the prior-year quarter. Net margin was 6.6%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $11.24 billion. On the bottom line, the average EPS estimate is $1.85.
Next year's average estimate for revenue is $45.68 billion. The average EPS estimate is $8.10.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,759 members out of 1,874 rating the stock outperform, and 115 members rating it underperform. Among 490 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 469 give Lockheed Martin a green thumbs-up, and 21 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 $86.13.
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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.