Lockheed Martin Earnings: Revenue Falls After Two Straight Increases as Profit Drops

S&P 500 (NYSE:SPY) component Lockheed Martin (NYSE:LMT) reported its results for the fourth 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 for the Fourth Quarter

Results: Net income from continuing operations for the aerospace/defense products and services company fell to $698 million ($2.14 per share) vs. $983 million ($2.28 per share) a year earlier. This is a decline of 29% from the year earlier quarter.

Revenue: Fell 4.6% to $12.21 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: LMT beat the mean analyst estimate of $1.94 per share. Analysts were expecting revenue of $12.31 billion.

Quoting Management: “Our continued focus on executing our customers’ programs domestically and internationally resulted in a strong year with a record backlog,” said Bob Stevens, chairman and chief executive officer. “We will need to remain agile in 2012 given the uncertainties ahead, but I am confident that our workforce and diversified portfolio will enable us to continue to deliver value to our customers and shareholders.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 26 cents in the third quarter, by 12 cents in the second quarter, and by 4 cents in the first quarter.

A year-over-year revenue decrease last quarter snaps a streak of two consecutive quarters of revenue increases. Revenue rose 6.5% in the third quarter and 1% in the second quarter.

Margins contracted in the third quarter after expanding the quarter before. Gross margin fell 0.3 percentage point to 8.1% from the year earlier quarter. In the second quarter, the figure rose 1.2 percentage points to 8.2% from the year earlier quarter.

Net income has dropped 0.1% year over year on average across the last five quarters. Performance was hurt by a 29% decline in the most recent quarter from the year earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from $1.80 a share to $1.68 over the last ninety days. Over the past three months, the average estimate for the fiscal year has climbed from $7.55 per to share to $7.63.

Competitors to Watch: Astrotech Corp. (NASDAQ:ASTC), The Boeing Company (NYSE:BA), Northrop Grumman Corp. (NYSE:NOC), General Dynamics Corp. (NYSE:GD), Alliant Techsystems Inc. (NYSE:ATK), Raytheon Company (NYSE:RTN).

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

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com