Lockheed Martin Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Lockheed Martin (NYSE:LMT) will unveil its latest earnings tomorrow, Thursday, January 24, 2013. Lockheed Martin is a global security company that develops and manufactures advanced technology systems and products.

Lockheed Martin Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.79 per share, a decline of 29.2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.85. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.79 during the last month. Analysts are projecting profit to rise by 2.2% versus last year to $8.41.

Past Earnings Performance: Last quarter, the company beat estimates by 36 cents, coming in at profit of $2.21 a share versus the estimate of net income of $1.85 a share. It marked the fourth straight quarter of beating estimates.

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Here’s how Lockheed Martin traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

LMT

Wall St. Revenue Expectations: Analysts are projecting a decline of 8.7% in revenue from the year-earlier quarter to $11.15 billion.

A Look Back: In the third quarter, profit rose 3.9% to $727 million ($2.21 a share) from $700 million ($2.10 a share) the year earlier, exceeding analyst expectations. Revenue fell 2.1% to $11.87 billion from $12.12 billion.

Analyst Ratings: There are mostly holds on the stock with 11 of 17 analysts surveyed giving that rating.

Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 26% in the first quarter and 5.3% in the second quarter before increasing again in the third quarter.

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 3.2% in the second quarter and 6.2% in the first quarter before falling in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.25 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company improved this liquidity measure from 1.21 in the second quarter to the last quarter driven in part by an increase in current assets. Current assets increased 6.7% to $15.79 billion while liabilities rose by 3.3% to $12.67 billion.

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