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Lockheed Martin (LMT) Beats Q3 Earnings, Sales Estimates

Lockheed Martin CorporationLMT is the largest U.S. defense contractor with a platform-centric focus that guarantees a steady inflow of follow-on orders from a leveraged presence in the Army, Air Force, Navy and IT programs.

However, a large percentage of Lockheed Martin's business comes from the U.S. government. Hence, any cutback in the domestic defense budget is a potential risk for its future performance.

Estimate Trend & Surprise History

Investors should note that the third quarter Zacks Consensus Estimate for earnings of $2.86 per share has increased by a penny over the last 7 days.

Coming to the earnings surprise, Lockheed Martin Corporation has surpassed the Zacks Consensus Estimate in the last four quarters, resulting in a positive average surprise of 5.45%.

LOCKHEED MARTIN Price and EPS Surprise

LOCKHEED MARTIN Price and EPS Surprise | LOCKHEED MARTIN Quote

Zacks Rank: Currently, Lockheed Martin has a Zacks Rank #4 (Sell) but that could change following its third quarter 2016 earnings report which has just released. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

We have highlighted some of the key details from the just-released announcement below:

Earnings: Lockheed Martin beat on earnings. Earnings per share came in at $3.61, beating the Zacks Consensus Estimate of $2.86 by 26.2%.

Revenue: Revenues of $11.55 billion surpassed the Zacks Consensus Estimate of $11.38 billion by 1.5%.

Key Stats to Note: During the third quarter, Lockheed Martin completed the previously announced divestiture of its Information Systems & Global Solutions (IS&GS) business segment. On account of this transaction, the company's common stock outstanding reduced by approximately 9.4 million shares (by 3%), while it received a one-time special cash payment of $1.8 billion.

Lockheed Martin has raised its revenue guidance for the year to $46.5 billion, from the prior projection in the band of $45−$46.2 billion, adjusted for IS&GS. The company also increased its earnings guidance to $12.10, from previous projection band of $11.15-$11.45; adjusted for IS&GS.

Stock Price: Following the earnings release, share prices for the company did not show any movement in the pre-market trading session.

Check back later for our full write up on this Lockheed Martin earnings report later!

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LOCKHEED MARTIN (LMT): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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