The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Lockheed Martin beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share contracted significantly.
Gross margins shrank, operating margins increased, net margins contracted.
Lockheed Martin booked revenue of $12.10 billion. The 17 analysts polled by S&P Capital IQ predicted sales of $11.16 billion on the same basis. GAAP reported sales were 0.9% lower than the prior-year quarter's $12.21 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 $1.78. The 21 earnings estimates compiled by S&P Capital IQ predicted $1.82 per share. GAAP EPS of $1.73 for Q4 were 17% lower than the prior-year quarter's $2.09 per share. (The prior-year quarter included -$0.05 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 8.2%, 950 basis points worse than the prior-year quarter. Operating margin was 8.8%, 270 basis points better than the prior-year quarter. Net margin was 4.7%, 90 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $10.80 billion. On the bottom line, the average EPS estimate is $1.95.
Next year's average estimate for revenue is $45.26 billion. The average EPS estimate is $8.31.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,761 members out of 1,880 rating the stock outperform, and 119 members rating it underperform. Among 499 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 481 give Lockheed Martin a green thumbs-up, and 18 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 $93.93.
Looking for alternatives to Lockheed Martin? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Lockheed Martin to My Watchlist.