Lockheed Martin Earnings: Earnings Exceed Expectations

S&P 500 (NYSE:SPY) component Lockheed Martin (NYSE:LMT) reported net income above Wall Street’s expectations for the third quarter. Lockheed Martin is a global security company that develops and manufactures advanced technology systems and products.

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Lockheed Martin Earnings Cheat Sheet

Results: Net income for the aerospace/defense rose to $727 million ($2.21 per share) vs. $700 million ($1.99 per share) in the same quarter a year earlier. This marks a rise of 3.9% from the year-earlier quarter.

Revenue: Fell 2.1% to $11.87 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Lockheed Martin beat the mean analyst estimate of $1.85 per share. It beat the average revenue estimate of $11.29 billion.

Quoting Management: “Our strong operating results this quarter are a reflection of several factors, including our relentless focus on affordability and program execution,” said Bob Stevens, chairman and chief executive officer. “We also have a strategy that is aligned with our customers, a proven portfolio of products and technologies, and a team that is talented and dedicated, even with the uncertainties that lie ahead. We remain focused on meeting our customer commitments and delivering value to our shareholders.”

Key Stats:

The company has now seen its net income rise for three quarters in a row. In the second quarter, net income rose 5.3% and in the first quarter, the figure rose 26%.

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 46 cents in the second quarter, by 32 cents in the first quarter, and by 59 cents in the fourth quarter of the last fiscal year.

A year-over-year revenue decrease last quarter snaps a streak of two consecutive quarters of revenue increases. Revenue rose 3.2% in the second quarter and 6.2% in the first quarter.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from $1.88 per share to $1.85, indicating that analysts are growing pessisimistic about the company’s performance next quarter. Over the past three months, the average estimate for the fiscal year has climbed from $8.05 per to share to $8.10.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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