Lockheed Martin raises its annual EPS forecast, but sales are struggling. stock slip
Lockheed Martin Corp. (NYSE:LMT) stock is falling after the company reported mixed third-quarter results.
The company reported net sales of $17.104 billion, up 1.3% year over year, missing the consensus of $17.351 billion. Adjusted EPS was $6.84, up from $6.77 a year ago and above consensus of $6.50.
Gross profit margin expanded by 24 bps to 12.4%. Operating profit was $2.14 billion, and margin increased 41 bps to 12.5%.
Sales in the aviation field were $6,487 million (down 3% year-on-year), and operating profit margin was 10.2%, up from 10% year-on-year. Missile and fire control sales were $3.175 billion (up 8% from the previous year). Operating profit margin was 14.4%, up from 13.5% in the same period last year.
Rotary and Mission Systems sales were $4.367 billion (up 6% year over year). Operating margin was 11.1%, a decline of 60 bps. Space net sales were $3.075 billion (down 1% year over year). Operating margin was 8.8%, an increase of 40 bps.
Lockheed Martin generated operating cash flow of $5.949 billion for the nine-month period, compared to $5.555 billion in the year-ago period.
At the end of the quarter, LMT’s total backlog was $165,693 million, an increase of 3.1% from December 31, 2023. LMT returned $1.6 billion in cash to shareholders through dividends and stock repurchases during the quarter.
Also Read: Lockheed Martin Stock Is Up in Tuesday’s Premarket: What’s Going on?
Dividend: LMT recently announced that it will pay a fourth quarter dividend of $3.30 per share. This represents an increase of $0.15 per share over the previous quarter’s dividend. Payment will be made on December 27th to record holders as of the close of business on December 2nd.
Additionally, on October 2, the company’s board of directors authorized up to an additional $3 billion in common stock repurchases, increasing the total number of potential future common stock repurchases authorized to $10.3 billion.
“As a result of our strong year-to-date performance and our confidence in our near-term performance, we are raising our full-year 2024 sales, segment operating income, EPS and free cash flow guidance,” Lockheed Martin Chairman and President said in a statement. , CEO Jim Taiclet.
“Looking to the future, we are strengthening the resiliency and scalability of our production systems, accelerating cutting-edge digital and physical technologies into all of our mission solutions and internal operations, and advancing our 21st Century Security Strategy. We will continue to advance our key initiatives: expand our production capacity and drive more international sales through international partnerships,” Teichle added.
FY24 Outlook, Revised: Lockheed Martin reduced its revenue outlook to approximately $71.25 billion from a range of $70.5 billion to $71.5 billion, compared to a consensus of $71.05 billion.
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LMT raises EPS guidance from $26.10 to $26.60 to $26.65, versus consensus $26.38.
The company currently has segment operating income of $7.475 billion (previously $7.35 billion to $7.55 billion) and operating cash of $7.95 billion (previously $7.75 billion to $8.0 billion). 50 million) and free cash flow of $6.2 billion (previously $6.0 billion to $6.3 billion). .
Price Action: LMT stock is trading 4.91% lower at $584.45 at last check on Tuesday.
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The article Lockheed Martin raises annual EPS guidance but sales struggle; Stock Slips originally appeared on Benzinga.com
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