Lockheed Martin Q4 Earnings: Finishing The Year Off With A Bang

+7.78%
Upside
455
Market
490
Trefis
LMT: Lockheed Martin logo
LMT
Lockheed Martin

Lockheed Martin (NYSE: LMT) posted stellar earnings this time around. Barring a one-time charge of about $1.9 billion on the recent tax reform, the company managed to post an increase of about 25% in earnings year over year at $3.87, (adjusted number of $4.30), however, the unadjusted figure fell short of analyst estimates. Further, the defense giant also posted a near 10% increase in revenues in comparison to the same period last year. Sales in the quarter were driven by improved performance at Aeronautics, Rotary and Missions Systems, and Missiles and Fire Control.

Additionally, given the tax cut and better performance, the company decided to post seemingly  optimistic guidance for 2018. Lockheed expects full year earnings in the coming financial year to lie between $15.20-$15.50 a share, while revenues come in around $50 billion to $51.5 billion. In comparison, analysts had expected earnings of $14 per share on sales of $51.53 billion.

The graphs below were made using Trefis Dashboards.

Relevant Articles
  1. Should You Pick Lockheed Martin Stock At $430 After Q4 Beat?
  2. Down 20% This Year Is RTX A Better Pick Over Lockheed Martin Stock?
  3. After An 8% Rise In A Month What’s Next For Lockheed Martin Stock
  4. Which Is A Better Pick – Lockheed Martin Stock Or Starbucks?
  5. Why The Space Theme Is Underperforming This Year
  6. Here’s What We Expect From Lockheed Martin’s Q2

As mentioned above, the company’s aeronautics division performed well in the quarter on the back of increased production of the F-35 and deliveries of the C-130. Missiles and Fire Control posted its best quarter in the year, with sales jumping by almost 30.5% on increased deliveries. The company also managed to post better-than-expected sales of about 14% at Rotary and Missions Systems, spurred on by a better product mix. That said, business at Space Systems declined by almost 12%, primarily owing to a reduction in launch-related events.

Like many companies in the U.S., Lockheed has benefited greatly from the corporate tax cut. The company expects to pump most of the savings in R&D towards developing a boost phase missile defense – shooting down a missile during the ascent phase. We can expect to learn more about this in the upcoming weeks.

View Interactive Institutional Research (Powered by Trefis):

Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap
More Trefis Research