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Lockheed Martin (LMT) Beats Q4 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 fourth quarter Zacks Consensus Estimate for earnings of $3.04 per share has remained stable 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 11.36%.

Zacks Rank: Currently, Lockheed Martin has a Zacks Rank #1 (Strong Buy) but that could change following its fourth quarter 2016 earnings report which has just released. You can see the complete list of today's Zacks #1 Rank 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 $3.25, beating the Zacks Consensus Estimate of $3.04 by 6.9%.

Lockheed Martin Corporation Price and EPS Surprise

Lockheed Martin Corporation Price and EPS Surprise | Lockheed Martin Corporation Quote

Revenue: Revenues of $13.75 billion surpassed the Zacks Consensus Estimate of $13.09 billion by 5%.

Key Stats to Note: During the fourth quarter, net sales from Lockheed Martin's Aeronautics segment increased 23% year over year, while the same form Rotary and Missions Systems increased 37%. Sales from Space Systems improved 17%, however sales from Missiles and Fire Control segment decreased 11%. The company repurchased 3.2 million shares for $816 million and paid cash dividends worth $530 million, during the quarter.

Stock Price: Following the earnings release, share prices for the company initially dropped 1.6% in the pre-market trading session. However, given the fact that Lockheed Martin provided better-than-expected fourth quarter results, we can expect to see an improvement in the same, later.

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

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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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