What to expect from Lockheed Martin’s next quarterly earnings report

Lockheed Martin Corporation, headquartered in Bethesda, Maryland LMTwith a market capitalization of $111.9 billion, specializes in the production and design of fighter aircraft and missiles, famous for fighter planes such as the F-16 Falcon, F-22 Raptor and F-35 Lightning. The defense powerhouse is preparing to disclose its fiscal second quarter 2024 earnings before the market opens on Tuesday, July 23.

Ahead of the event, analysts expect Lockheed Martin to report earnings of $6.45 per share, down 4.2% from $6.73 per share reported in the year-ago quarter. The company has consistently topped Wall Street earnings estimates in its most recent quarterly reports.

Although adjusted earnings for the most recently reported quarter fell 1.6% year over year to $6.33 per share, they still beat consensus estimates by 9.1%. The quarterly decline in net income was due to higher interest expenses and lower pension income, outweighing gains from higher profits and a reduced share count.

For fiscal 2024, analysts forecast Lockheed Martin will post earnings per share of $26.17, down 5.9% from earnings per share of $27.82 in fiscal 2023. However, in fiscal 2025, earnings per share are expected to increase 8.4% annually to $28.37.

LMT shares are XAR An increase of 2.7% over the same period.

Lockheed Martin capitalized on the rise in global tensions, driving solid annual revenue growth of 13.7% to $17.2 billion in Q1. However, squeezed margins on some programs due to supplier shortages and rising costs hurt profitability. Despite these challenges, the company remains proactive in strengthening supplier relationships to improve quality and performance.

But concerns are emerging as reports of potential losses of more than $1 billion from secret projects in the missile and fire control segments have unsettled investors.

The consensus view on Lockheed Martin stock is Moderately Bullish, with an overall rating of “Moderate Buy.” This is based on 17 analysts covering the stock, with five advising a “Strong Buy” rating, 11 playing it safe with a “Hold” rating, and the rest having a “Strong Sell” rating. Over the past three months, a new “Strong Buy” recommendation has been added to the consensus.

The average price target for Lockheed Martin shares is $490.89, indicating a potential upside of 5.2% from current price levels.

As of the date of publication, Sristi Jayaswal did not hold (directly or indirectly) a position in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. For more information, please refer to Barchart’s Disclosure Policy here.