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Lockheed Martin Beats on Both Top and Bottom Lines

By Seth Jayson – Updated Apr 10, 2017 at 12:43PM

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Just the facts, Fool.

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

The 10-second takeaway
For the quarter ended June 30 (Q2), Lockheed Martin beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped. GAAP earnings per share grew.

Margins grew across the board.

Revenue details
Lockheed Martin reported revenue of $11.41 billion. The 16 analysts polled by S&P Capital IQ hoped for revenue of $11.15 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 $2.64. The 21 earnings estimates compiled by S&P Capital IQ anticipated $2.21 per share. GAAP EPS of $2.64 for Q2 were 11% higher than the prior-year quarter's $2.38 per share.

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 10.7%, 80 basis points better than the prior-year quarter. Operating margin was 11.4%, 130 basis points better than the prior-year quarter. Net margin was 7.5%, 90 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $11.16 billion. On the bottom line, the average EPS estimate is $2.20.

Next year's average estimate for revenue is $44.90 billion. The average EPS estimate is $9.01.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,797 members out of 1,921 rating the stock outperform, and 124 members rating it underperform. Among 497 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 479 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 $103.27.

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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. 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.

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