Earnings season continues to chug along, with this week’s reporting docket notably busy. So far, the period has been solid, with overall earnings growth for the S&P 500 on track to be positive for another period.
So far, there have been several notable reports, including those from Lockheed Martin LMT, Deckers Outdoor DECK, and 3M MMM. Shares of each popped following their quarterly results, with each posting strong results.
For those interested in post-earnings momentum, let’s take a closer look at each.
Deckers Outdoor Raises Outlook
Deckers Outdoor, a current Zacks Rank #2 (Buy), is a leading designer, producer, and brand manager of innovative, niche footwear and accessories developed for outdoor sports, and other lifestyle-related activities.
The company posted a double beat, with earnings and revenue growing 87% and 22%, respectively. Continued brand momentum among UGG and Hoka shoes aided the robust results, leading the company to up its current fiscal year outlook.
Analysts have updated their outlook for the company’s current fiscal year accordingly following the print, with the $31.33 Zacks Consensus EPS estimate suggesting 8% growth year-over-year.
Image Source: Zacks Investment Research
The company has also been enjoying margin expansion, aiding its profitability picture nicely. And it enjoyed the same throughout its latest release, with its gross margin expanding to 56.9% vs 51.3% in the year-ago period.
Please note that the chart below is on a trailing twelve-month basis.
Image Source: Zacks Investment Research
Lockheed Martin Posts Robust Cash Flow
Lockheed Martin is the largest defense contractor in the world, operating in defense, space, intelligence, homeland security, and information technology. The company’s steady growth continued throughout its latest period, with EPS and revenue growing 6% and 9%, respectively.
Below is a chart illustrating the company’s sales on a quarterly basis.
Image Source: Zacks Investment Research
CEO Jim Taiclet was pleased with the results, stating, ‘First quarter sales increased significantly year-over-year and we generated robust free cash flow of nearly $1.3 billion, while taking assertive actions to further strengthen production capacity. In addition, we continued our disciplined and dynamic capital deployment by investing over $700 million into R&D and capital projects and returned significant capital to shareholders through dividends and share repurchases as we remain committed to delivering meaningful free cash flow per share growth over the long-term.’
The company has been a long-time favorite among income-focused investors, upping its payout consistently over its history. LMT’s cash-generating abilities have aided the dividend growth, providing it with its shareholder-friendly nature.
Image Source: Zacks Investment Research
3M Enjoys Profitability Boost
3M operates as a diversified technology firm with four reportable segments: Safety and Industrial, Transportation and Electronics, Health Care, and Consumer. Share got a boost following its quarterly release, with the company posting 40% Y/Y EPS growth.
Perhaps to the surprise of some, shares are up a staggering 60% over the last six months, with both of its recent prints providing post-earnings positivity.
Image Source: Zacks Investment Research
The company adjusted its current year outlook thanks to the results, now expecting adjusted EPS in a band of $7.00 - $7.30 per share ($6.80 - $7.30 per share previously). Like LMT, the company’s long been shareholder-friendly, returning $786 million to shareholders through dividends and buybacks throughout the period.
Margin pressures have weighed heavily on shares but have recently shown signs of stabilization, as we can see below.
Image Source: Zacks Investment Research
Bottom Line
Earnings season continues to chug along, with a stacked reporting docket for this week specifically. We’ve seen many positive surprises so far, including those from Lockheed Martin LMT, Deckers Outdoor DECK, and 3M MMM.
More surprises are sure to come.
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