Security and Aerospace company Lockheed Martin (NYSE:LMT) will be reporting results this Thursday before the bell. Here’s what to look for.
Lockheed Martin beat analysts’ revenue expectations last quarter, reporting revenues of $20.06 billion, up 10.5% year on year. It was an exceptional quarter for the company, with full-year revenue guidance beating analysts’ expectations and full-year EPS guidance slightly topping analysts’ expectations.
Is Lockheed Martin a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Lockheed Martin’s revenue to grow 9.9% year on year, improving from the 8.8% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Lockheed Martin has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Lockheed Martin’s peers in the aerospace and defense segment, some have already reported their Q3 results, giving us a hint as to what we can expect. RTX delivered year-on-year revenue growth of 11.1%, beating analysts’ expectations by 3.3%, and Northrop Grumman reported revenues up 6.7%, in line with consensus estimates.
Read our full analysis of RTX’s results here and Northrop Grumman’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the aerospace and defense stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.1% on average over the last month. Lockheed Martin is up 2.2% during the same time and is heading into earnings with an average analyst price target of $618.86 (compared to the current share price of $547.44).
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