Lockheed Martin Stock (NYSE:LMT)
Lockheed Martin Corporation (NYSE:LMT) is a multinational aerospace, arms, defense, information security, and technology corporation headquartered in the United States. In March 1995, Lockheed Corporation merged with Martin Marietta to form the company. Its headquarters are in North Bethesda, Maryland, near Washington, D.C.
On January 24, before the opening bell, Lockheed Martin is scheduled to reveal the financial results for the fourth quarter and the full year of 2022.
The company had an average earnings surprise of 5.62% across all four quarters. Lockheed Martin’s performance in the fourth quarter was likely improved by higher sales volume from most of the company’s businesses and increased share buybacks. Lockheed Martin stock has gained about 17% over one year.
Let’s look at how things developed before this news was released.
Lockheed Martin Expected to Post Impressive Sales in Aeronautics and Space
It is anticipated that the Aeronautics segment, primarily responsible for producing cutting-edge jets that have been proven effective in combat and account for almost 40% of the company’s top line, will deliver an impressive performance in the soon-to-be-reported quarter.
The Aeronautics segment’s performance in the quarter was bolstered by the increased volume from its classified programs and the increased number of F-35 deliveries.
The current consensus estimate for this division’s revenues in the fourth quarter is $7,387 million, which represents a 3.6% increase over the figure that was reported in the previous year.
As a result of the continuous acceleration of the next-generation interceptor program, the Space business segment is likewise anticipated to deliver outstanding performance in the soon-to-be-reported quarter.
The current consensus estimate for this division’s revenue in the fourth quarter is $3.033 billion, which represents a 3.8% increase from the figure that was reported in the previous year.
Aspects Regarding the MFC and RMS’s Performance
The United States of America and its international partners receive vital support for their missile defense from the Missiles and Fire Control (MFC) sector of Lockheed Martin. The improved sales performance of this unit in the soon-to-be-reported quarter must be attributable to the higher volume that was contributed by tactical and strikes missiles.
However, lower sustainment revenues for special operations due to the departure of troops from Afghanistan may have negatively impacted the performance of the MFC unit during the fourth quarter.
The Consensus Estimate for the revenues of the MFC division is now fixed at $3,177 million, which indicates a 1.3% decline from the figure recorded one year ago.
The robust production volume for helicopters likely contributed to the improved performance of the Rotary and Mission Systems (RMS) sector during the fourth quarter.
The Consensus Estimate for the revenues of the RMS segment in the fourth quarter is now pegged at $4,651 million. This indicates a 4.3% gain from the figure that was reported in the previous year.
Predictions for the Fourth Quarter
Lockheed Martin’s overall sales performance in the soon-to-be-reported quarter may have benefited from the sales improvement that was projected in the company’s three key segments, given the events mentioned above.
The current consensus estimate for the company’s revenue in the fourth quarter is $18.25 billion, which represents a 2.9% rise from the figure that was reported in the previous year.
Lockheed Martin’s earnings for the fourth quarter are anticipated to have increased due to the strong sales performance and the incremental scheduled buybacks that the company implemented.
The Consensus Estimate for the defense giant’s earnings in the fourth quarter is set at $7.41 per share, which indicates an increase of 2.4% from the number that was reported the year before.
Lockheed Martin stock fell after Goldman Sachs lowered its price target for Lockheed to $322 a share from $388 a share. Shares are down nearly 8% year-to-date.
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