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.
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 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.
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.)
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.
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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