Lockheed Martin Earnings: What To Look For From LMT

Security and Aerospace company Lockheed Martin (NYSE:LMT) will be reporting results this Tuesday before market hours. Here’s what to look for.

Lockheed Martin beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $17.96 billion, up 4.5% year on year. It was a strong quarter for the company, with a solid beat of analysts’ backlog estimates and an impressive beat of analysts’ adjusted operating income estimates.

Is Lockheed Martin a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Lockheed Martin’s revenue to grow 2.6% year on year to $18.59 billion, slowing from the 8.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $6.47 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Lockheed Martin has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Lockheed Martin’s peers in the aerospace and defense segment, some have already reported their Q2 results, giving us a hint as to what we can expect. AAR delivered year-on-year revenue growth of 14.9%, beating analysts’ expectations by 8.6%, and Byrna reported revenues up 40.6%, in line with consensus estimates. AAR traded up 13.4% following the results while Byrna was down 28.8%.

Read our full analysis of AAR’s results here and Byrna’s results here.

There has been positive sentiment among investors in the aerospace and defense segment, with share prices up 6.5% on average over the last month. Lockheed Martin is down 1.6% during the same time and is heading into earnings with an average analyst price target of $524.72 (compared to the current share price of $464.97).

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