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Lockheed Martin Beats on Both Top and Bottom Lines

By Seth Jayson - Updated Apr 10, 2017 at 1:42PM

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Just the facts, Fool.

Lockheed Martin (NYSE: LMT) reported earnings on April 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Lockheed Martin beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted slightly. Non-GAAP earnings per share grew. GAAP earnings per share expanded.

Margins grew across the board.

Revenue details
Lockheed Martin chalked up revenue of $11.07 billion. The 16 analysts polled by S&P Capital IQ predicted sales of $10.33 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $2.25. The 20 earnings estimates compiled by S&P Capital IQ anticipated $2.04 per share. Non-GAAP EPS of $2.25 for Q1 were 11% higher than the prior-year quarter's $2.02 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.) GAAP EPS of $2.33 for Q1 were 15% higher than the prior-year quarter's $2.03 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.)

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 9.4%, 80 basis points better than the prior-year quarter. Operating margin was 9.4%, 50 basis points better than the prior-year quarter. Net margin was 6.9%, 100 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $11.27 billion. On the bottom line, the average EPS estimate is $2.21.

Next year's average estimate for revenue is $45.10 billion. The average EPS estimate is $8.92.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,788 members out of 1,908 rating the stock outperform, and 120 members rating it underperform. Among 480 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 463 give Lockheed Martin a green thumbs-up, and 17 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 $95.00.

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Stocks Mentioned

Lockheed Martin Corporation Stock Quote
Lockheed Martin Corporation
LMT
$442.78 (2.25%) $9.75

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