Lockheed Martin Corporation (LMT) released their first quarter results on Wednesday, reporting revenues of US$14.96 billion for the period.
This is -16% lower than last quarter’s revenue of US$17.79 billion and -3.79% lower than analyst’s estimates of US$15.53 billion. Looking at the breakdown of the company’s revenues by business lines, we can see that aeronautics was the largest contributor (US$6.4 billion), followed by rotary and mission systems (US$3.55 billion), space (US$2.56 billion) and missiles & fire control (US$2.45 billion).
Net income was also down, coming in at US$1.718 billion for the first quarter, -16.96% lower than previous quarter’s US$2.07 billion and -4% lower than analyst estimates of US$1.79 billion. President and CEO James Taiclet put a positive spin on the results, highlighting improved margins, despite operational supply chain challenges faced due to the COVID-19 pandemic stating:
“Lockheed Martin had a solid start to the year by delivering margin expansion and free cash flow above our expectations despite recent Covid-surge impacts on our operations and supply chain.”
LMTs revenue and net income estimates for Q2 2022 are US$16.14 billion and US$1.7 billion respectively, with Mr. Taiclet reiterating the company’s guidance on revenue of US$66 billion for FY2022, citing the current geo-political environment:
“The men and women of Lockheed Martin are fully dedicated to enhancing this deterrence capability by effectively delivering on our existing platform programs and systems, while accelerating the integration of digital world technologies to enable true Joint All Domain Operations for our customers.”
The company announced a dividend payout of US$2.80/share for the quarter. EPS for the quarter was US$7.71, -11% lower compared to last quarter’s EPS of US$8.68 but +3.74% higher than analyst’s estimate of $6.28. In reaction to the results, LMTs share price closed -1.31% lower on Wednesday at US$453.87. This remains 17% higher than the share price of US$387.33 from one year ago, while analysts on Bloomberg have a consensus of the TTM price target of US$475.19.
