Lockheed Martin Earnings on Deck

S&P 500 (NYSE:SPY) component Lockheed Martin (NYSE:LMT) will unveil its latest earnings on Wednesday, October 24, 2012. 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 analyst estimate is for profit of $1.85 per share, a decline of 10.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.97. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.85 during the last month. Analysts are projecting profit to rise by 1.6% versus last year to $8.10.

Past Earnings Performance: Last quarter, the company beat estimates by 46 cents, coming in at net income of $2.38 a share versus the estimate of profit of $1.92 a share. It marked the fourth straight quarter of beating estimates.

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Wall St. Revenue Expectations: Analysts predict a decline of 7.8% in revenue from the year-earlier quarter to $11.18 billion.

Stock Price Performance: Between July 25, 2012 and October 18, 2012, the stock price rose $6.64 (7.6%), from $87.68 to $94.32. The stock price saw one of its best stretches over the last year between August 9, 2012 and August 21, 2012, when shares rose for nine straight days, increasing 3.6% (+$3.26) over that span. It saw one of its worst periods between May 10, 2012 and May 18, 2012 when shares fell for seven straight days, dropping 3.9% (-$3.34) over that span.

A Look Back: In the second quarter, profit rose 5.3% to $781 million ($2.38 a share) from $742 million ($2.14 a share) the year earlier, exceeding analyst expectations. Revenue rose 3.2% to $11.92 billion from $11.55 billion.

Key Stats:

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 6.2% in the first quarter before climbing again in the second quarter.

The company enters this earnings announcement with steady profits recently. Net income has risen year-over-year average of 5.8% for the last four quarters.

Analyst Ratings: There are mostly holds on the stock with 14 of 18 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.21 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 1.19 in the first quarter to the last quarter driven in part by an increase in current assets. Current assets increased 1.6% to $14.8 billion while liabilities rose by 0.5% to $12.27 billion.

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

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