Categories AlphaGraphs, Earnings, Industrials

Lockheed Martin swings to profit in Q4 but misses estimates

Lockheed Martin (LMT) swung to a profit in the fourth quarter from a loss last year, which included a one-time charge related to the estimated impacts of the tax reform. The top line exceeded analysts’ expectations while the bottom line missed consensus estimates. Also, the defense contractor guided full-year 2019 earnings below the Street’s view.

Net income was $1.25 billion or $4.39 per share compared to a loss of $744 million or $2.60 per share in the previous year quarter. Excluding the estimated impacts of the Tax Act, adjusted earnings from continuing operations were $1.2 billion or $4.03 per share in the fourth quarter of 2017.

Net sales rose 4.1% to $14.4 billion. The company posted year-over-year sales increases in three of its business segments.

Looking ahead into the full year 2019, the company predicts net sales in the range of $55.75 billion to $57.25 billion and earnings in the range of $19.15 to $19.45 per share. Business segment operating profit is expected to be $6 billion to $6.15 billion.

Lockheed Martin fourth quarter 2018 earnings snapshot
Lockheed Martin Q4 2018 Earnings Infographic

The company expects the 2019 net FAS/CAS pension benefit to be about $1.5 billion based on a 4.25%, a negative 5% return on plan assets in 2018, a 7% expected long-term rate of return on plan assets in future years, and the revised longevity assumptions released during the fourth quarter of 2018 by the Society of Actuaries.

In the Aeronautics segment, sales increased 4% primarily attributable to higher net sales for the F-35 and the F-16 programs due to increased volume. In Missiles and Fire Control, net sales improved 22%, primarily due to higher sales for tactical and strike missiles programs as well as integrated air and missile defense programs.

In Space, segment sales rose 2%, driven primarily by higher sales in Orion program, strategic and missile defense programs, and government satellite programs. However, Rotary and Mission Systems segment sales fell 4% in the quarter, due to lower sales for Sikorsky helicopter programs, which reflect lower volume for Black Hawk production.

Shares of Lockheed Martin ended Monday’s regular session up 0.29% at $287.87 on the NYSE. The stock has fallen over 16% in the past year and over 5% in the past three months.

 

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

3 thoughts on “Lockheed Martin swings to profit in Q4 but misses estimates

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment
Loading...

Cancel
Viewing Highlight
Loading...
Highlight
Close
Top