Lockheed Martin Beats on EPS, but GAAP Results Lag
Lockheed Martin (NYS: LMT) reported earnings on Jan. 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Lockheed Martin met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped, and GAAP earnings per share shrank significantly.
Gross margins shrank, operating margins increased, net margins shrank.
Lockheed Martin logged revenue of $12.21 billion. The 17 analysts polled by S&P Capital IQ foresaw revenue of $12.30 billion. Sales were 4.6% lower than the prior-year quarter's $12.79 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $2.14. The 21 earnings estimates compiled by S&P Capital IQ forecast $1.95 per share on the same basis. GAAP EPS of $2.09 for Q4 were 23% lower than the prior-year quarter's $2.73 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 8.1%, 30 basis points worse than the prior-year quarter. Operating margin was 8.9%, 10 basis points better than the prior-year quarter. Net margin was 5.6%, 210 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $10.47 billion. On the bottom line, the average EPS estimate is $1.67.
Next year's average estimate for revenue is $45.76 billion. The average EPS estimate is $7.85.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,756 members out of 1,874 rating the stock outperform, and 119 members rating it underperform. Among 495 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 476 give Lockheed Martin a green thumbs-up, and 19 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 $79.06.
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At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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