Categories Earnings, Industrials, Technology

Earnings preview: Defense contracts to drive Lockheed Martin Q4 results

Defense contractor Lockheed Martin (LMT) is scheduled to post its fourth-quarter earnings results on Tuesday before the bell. The company continues to win significant contracts from the US Department of Defense and its allies. This could provide a boost to the bottom line if the company were able to manage the costs and expenses properly.

Analysts expect Lockheed Martin to report earnings of $4.40 per share on revenue of $13.72 billion for the fourth quarter. In comparison, during the previous year quarter, the company posted a loss of $2.25 per share on revenue of $15.14 billion. Majority of the analysts recommended a “hold” rating while expecting the stock to reach $343.32 in the next 52 weeks.

The top line is likely to be hurt by the non-accrual of orders into ample revenue recognition. The increases in the F-35, F-16 and F-22 programs helped by higher volumes could be the driving factor of the Aeronautics segment sales. Meanwhile, the division is likely to face with a decline in sales due to non-completion of orders. Also, the segment will experience lower production volume for the C-5 aircraft.

In Missiles and Fire Control segment, sales could be driven by tactical and strike missiles programs as well as sensors and global sustainment programs. However, integrated air and missile defense programs could negatively impact the segment.

Lockheed Martin tops Q3 estimates; raises guidance

In the Space segment, government satellite programs, strategic and missile defense programs and the Orion program could be the driving factor to the sales growth. The higher volume from the strategic and missile defense programs could be offset by the weak volumes forecast in the government and commercial satellite programs.

Lockheed Martin is likely to provide or update its full-year 2019 guidance. Net sales growth was predicted to be around 5% to 6% and total business segment operating margin was expected to be 10.5% to 10.8%. Cash from operations was anticipated to be greater than or equal to $7 billion.

Shares of Lockheed Martin opened higher on Thursday and is trading in the green territory. The stock has fallen over 13% in the past year and over 8% in the past three months.

 

Listen to publicly listed companies’ earnings conference calls along with the edited closed caption text.

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,

Leave a Reply

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

Add Comment
Loading...

Cancel
Viewing Highlight
Loading...
Highlight
Close
Top