Lockheed Martin Corporation (NYSE: $LMT) stands as a prominent American conglomerate with global interests spanning aerospace, defense, arms, information security, and technology. It came into being in March 1995 through the merger of Lockheed Corporation and Martin Marietta.
The company’s headquarters are situated in North Bethesda, Maryland, in the Washington, D.C. metropolitan area. As of January 2022, Lockheed Martin boasts a workforce of approximately 115,000 employees worldwide, including around 60,000 engineers and scientists.
Lockheed Martin holds a distinguished position as one of the giants in the aerospace, military support, security, and technology sectors. In fiscal year 2014, it claimed the title of the world’s largest defense contractor by revenue.
In 2013, a significant 78% of its revenues were derived from military sales, securing its position at the top of the list of US federal government contractors, with nearly 10% of the Pentagon’s expenditures attributed to the company.
In 2009, US government contracts contributed $38.4 billion (85%), foreign government contracts amounted to $5.8 billion (13%), and commercial and other contracts made up $900 million (2%) of its earnings.
A substantial portion of Lockheed Martin’s annual sales, approximately half, is channeled to the U.S. Department of Defense. The corporation is also a contractor for the U.S. Department of Energy and the National Aeronautics and Space Administration (NASA).
For the fiscal year 2020, Lockheed Martin posted earnings of $6.833 billion, reporting an annual revenue of $65.398 billion, signifying a notable 9.3% increase from the preceding year.
The backlog, as of the end of 2019, amounted to $144.0 billion, up from $130.5 billion in 2018. Firm orders were recorded at $94.5 billion by the close of 2019.
The company’s shares traded at a robust value of over $389 per share, and its market capitalization was pegged at US$109.83 billion by the end of 2019.
In the 2019 Fortune 500 list, Lockheed Martin held the 60th position among the largest United States corporations, gauged by total revenue.
What Are The Expectations Around Lockheed Martin Stock Earnings?
Are you on the lookout for a stock that could maintain its impressive track record of beating earnings expectations in its upcoming report? Consider Lockheed Martin (LMT), a notable player in the Zacks Aerospace – Defense sector.
When we scrutinize its recent performance, this aerospace and defense company has consistently outperformed earnings estimates over the past two quarters. On average, it has surpassed estimates by a notable 5.30%.
In the most recent quarter, the market projected Lockheed to post earnings of $6.43 per share, but it delivered a stellar $6.73 per share, marking a substantial 4.67% surprise.
The prior quarter saw a consensus estimate of $6.07 per share, yet Lockheed exceeded expectations once again, reporting $6.43 per share, reflecting a 5.93% surprise.
Lockheed’s earnings estimates have been on an upward trajectory, largely attributable to its impressive earnings track record.
When you factor in the stock’s favorable Zacks Earnings ESP (Expected Surprise Prediction), it becomes a strong indicator of a potential earnings beat, particularly when paired with its solid Zacks Rank.
Our research highlights that stocks with both a positive Earnings ESP and a Zacks Rank #3 (Hold) or better tend to produce a positive surprise in nearly 70% of cases. In other words, within a group of 10 stocks possessing this combination, as many as seven may surpass the consensus estimate.
Zacks Earnings ESP assesses the Most Accurate Estimate against the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate is a version of the Zacks Consensus Estimate that adjusts to recent changes.
The underlying idea is that analysts who revise their estimates right before earnings releases possess the most up-to-date information, which could potentially be more accurate than earlier consensus predictions.
At present, Lockheed boasts an Earnings ESP of +0.15%, implying that analysts have recently displayed a bullish outlook on the company’s earnings potential.
This favorable Earnings ESP, combined with Lockheed’s Zacks Rank #3 (Hold), hints at the possibility of yet another earnings beat in the near future. Lockheed Martin’s next earnings report is expected on October 17, 2023.
While it’s essential to recognize that a negative Earnings ESP diminishes its predictive power, a negative value doesn’t necessarily indicate an earnings miss.
Many firms beat the consensus EPS estimate, and stock performance depends on various factors beyond just beating estimates. Some stocks remain stable even if they fall short of consensus estimates.
Hence, it is crucial to assess a company’s Earnings ESP ahead of its quarterly release to enhance the odds of a successful trade.
Be sure to utilize our Earnings ESP Filter to discover promising stocks for investment or trading opportunities before their earnings reports come in.
Israel War and Lockheed Martin Stock
U.S. defense stocks saw a significant surge on Monday following the Hamas attack on Israel, resulting in over 1,000 casualties and numerous injuries.
Israeli Prime Minister Benjamin Netanyahu, in a video address on Saturday, declared that Israel was “at war” and called for a robust military response. Furthermore, on Sunday, he reportedly conveyed to President Biden the imperative need to take action, as reported by Axios.
Investors reacted to the situation by driving up the stock prices of major defense companies such as Lockheed Martin, Northrop Grumman, RTX, and General Dynamics. This uptick in share prices reflects speculation about potential U.S. aid to its ally, which could encompass increased orders for weapons and military equipment.
Netanyahu has underscored the arduous and protracted nature of the conflict against Hamas. Over the weekend, Hamas terrorists carried out devastating attacks in what has been described as the deadliest assault on Israel in decades.
In response, Israel initiated airstrikes on the Hamas-controlled Gaza Strip and began mobilizing military reservists for a comprehensive response.
Additionally, Hezbollah, an Iran-backed terror group situated in Lebanon, has expressed support for Hamas, posing a continued threat on Israel’s northern border.
General Dynamics, a manufacturer of submarines and combat vehicles, experienced its most substantial stock price increase since March 2020, surging over 9%, according to Dow Jones Market Data Group.
What Every LMT Investor Should Know
Is Lockheed Martin stock expected to go up?
Of the 20 analysts providing one-year price projections for Lockheed Martin Corp, the median target is set at 490.00, with the highest estimate at 555.00 and the lowest estimate at 374.00. This median projection signifies a potential increase of +13.02% from the most recent price, which stood at 433.54.
Is Lockheed Martin a buy sell or hold?
Lockheed Martin Corp currently maintains a consensus rating of “Hold,” reflecting input from financial experts. This assessment results from a combination of 2 buy ratings, 10 hold ratings, and 1 sell rating. The average price target set for Lockheed Martin Corp stands at $497.27.
This figure derives from the analysis of 13 Wall Street analysts, who have provided their 12-month price targets within the past three months.
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